What insurance benefits exist with Credit Unions?

Credit unions have taken advantage of their united strength by providing savings and loan protection insurance cover for their members through Cuna Mutual Insurance Group which is owned by the credit union movement.

This protection is provided at no extra cost to its members and the Llandudno & District Credit Union takes full advantage of this benefit for its own members.

Insurance protection for your savings.

When you save with our Credit Union, your shares are covered by free life insurance - the level of that protection is subject to age (see below) and proportionate to the amount saved. The benefits are payable only on the death of a member.

Our Credit Union pays the premium for this protection out of our profits so there is no individual cost to you. This is an additional incentive to save regularly knowing that your savings are protected.

Eligibility

If you are saving with our Credit Union and you are under 70 years of age, you are eligible for this life savings insurance protection.

Cover provided

Every £1 you save with our credit union:

AGE	COVER
Before 55 years	provides £1 of insurance - 100% cover
55 - 59 years inclusive	provides 75p of insurance - 75% cover
60 - 64 years inclusive	provides 50p of insurance - 50% cover
65 - 70 years inclusive	provides 25p of insurance - 25% cover

The amount of insurance benefit depends on your age when you save your money in accordance with the above chart. For example, if you have savings of £100 before reaching 55 years of age and do not withdraw any amount then when you reach 56 years of age, you will still enjoy 100% insurance cover. If you withdraw some of that savings at 56 years of age, the balance of your original savings would now still receive 100% insurance protection. Any future savings you make would enjoy 75% insurance cover until you reached 60 years then the cover is determined by reference to the chart above.

In other words, providing you are under 70 years of age and continue saving with your credit union then you will receive free life insurance cover.

Insurance protection for your Loan

Again free life insurance cover on all loans is available to our members until they reach 70 years of age. Death cover on loans ceases at this stage.

If a member dies the debt is cancelled and repaid to the credit union by the insurance cover except in the age provision circumstances highlighted above.

Pre-Existing Condition Limitation (PCL)

Savings and loan protection insurance contracts carry a 6 months pre-existing condition limitation (PCL) as standard.

Each new share (savings) deposit a member makes or each new loan agreement a member enters into are governed by the 6 month PCL.

Cuna Mutual Group will not pay benefit on a members outstanding share balance or loan agreement if death results from a pre-existing illness or injury for which medical advice, consultation or treatment was received within 6 months prior to making the share deposit or taking out the loan agreement.

This PCL lasts for a period of 6 months from the start date of each share deposit or loan agreement. If a member dies 6 months or more after the date of the share deposit or commencement of the loan agreement, this rule will not be applied.

Not for Profit but for Service.

Please do not hesitate to contact us - we will help you all we can.