Larne Credit Union provides Loan Protection and Life Savings Insurance free of charge to all our eligible members. This is one of many benefits of being a member of a credit union.
Loan Protection Insurance
Loan Protection Insurance is the insurance cover the Credit Union provides on the lives of its borrowing members. 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 union’s policy. Larne Credit Union insures loans up to the member’s 85th birthday.
Life Savings Insurance
Life Savings Insurance is the life insurance cover the Credit Union provides for its eligible members as an additional incentive for them to save regularly. The amount of insurance benefit to which a member is entitled is in proportion to the amount of savings the member has and depends on the members age at date of lodgement.
| Age | Savings | Insurance Cover |
| Under 55 | Every £1 provides* | £1 of insurance |
| 55 – 59 | Every £1 provides* | 75p of insurance |
| 60 – 64 | Every £1 provides* | 50p of insurance |
| 65 – 69 | Every £1 provides* | 25p of insurance |
*Up to a maximum of £15,000, shares exceeding this amount will not incur any additional benefit.
Exceptions to this include:
- lodged after age 70 (though all savings earn the dividend approved at AGM), or
- lodged whilst not in good health, or
- Withdrawals after the age of 55 will affect the amount payable as only your minimum balance will be insured.
Death Benefit Insurance
All eligible members of the Credit Union can apply for insurance covered under our Death Benefit Insurance Policy. This means in the event of your death, a lump sum of £2,500 will be paid to your family to help with the cost of funeral expenses, thereby easing the financial burden of bereavement. This insurance is deductible directly from your credit union account annually, please speak to a member of staff for this year’s premium. If you wish to opt out of this scheme, please inform us in writing EVERY YEAR before our AGM. You will informed of the AGM date in advance.
Nobody enjoys talking or even thinking about their own mortality. However, the simple fact is funerals are now extremely expensive and very few people realise the impact funeral bills will have on their lives. In recent years the average cost of a funeral has increased to over £2,500. Death Benefit Insurance won’t ease bereavement, but it will go a long way towards easing the financial burden your death may place upon your family.
To qualify for death benefit insurance, you must be a Credit Union member, be in good health upon joining and must have joined before your 70th birthday. You must insure you maintain an appropriate balance to cover the cost of the annual premium.
