Life Savings Insurance
Life Savings Insurance is the FREE cover KMCU provides for eligible members.
Life Savings insurance could provide your beneficiary, with up to £10,000 in addition to your savings, upon your passing.
The amount of insurance benefit to which a member is entitled is proportionate to the amount of savings they hold. It also depends on the member's age at the time they made their deposits.
Every £1 you save before the age of 65 provides £1 of insurance.
Once you are over 65 each £1 you save with your credit union provides £0.25 of cover.
For example … if you saved £5,000 before 65 then £5,000 is the cover provided. If you deposited a further £5,000 between your 65th and 80th birthday, then 25% of that extra amount is covered, i.e. £1,250 providing a total of £6,250 cover.
No insurance is payable on amounts saved after your 80th Birthday. Because of this members should aim to have as much as possible in savings, and therefore covered, before this date.
Life Savings insurance could provide your dependents with up to £10,000 in addition to your savings, upon your passing.
Any savings over £10,000 are not covered.
For example if you have £11,000 in savings, only £10,000 would be paid upon death.
This means that your family would receive your £10,000 savings and the additional £6,250 insurance: a total of £16,250.
If you save £10,000 before your 65th birthday, and maintain that balance, then your family would receive the maximum insurance possible of £10,000 plus the savings you have.
For example if you saved £10,000 before your 65th birthday and saved an additional £5,000 after this date: your family would receive £25,000; £10,000 insurance and your £15,000 savings.
Loan Protection Insurance
Loan Protection Insurance is the cover the Credit Union provides on the lives of its borrowing members.
Should an insured borrower die, or (under most contracts) become totally and permanently disabled for any occupation, the insurance cover provides that the loan is repaid in full. If a member who is eligible for insurance cover and has signed the promissory note dies with a loan outstanding, the loan balance is paid in full by the insurer.
You will be informed at the time of the loan application if your loan exceeds the amount covered by the credit unions policy. Under the basic policy death cover ceases on the members 80th birthday.