Free Death Benefit
Free Bereavement Benefit on Savings & Loans
Caledonian Credit Union has a bereavement benefit in place for members, covering everyone aged from 18 up to the 80th birthday who have taken out a loan with the credit union. Any loan balance after the age of 80 will not be covered and therefore will be deducted from any savings held. (Terms and Conditions apply).
Caledonian Credit Union has a bereavement benefit policy in place for members’ savings. This is a discretionary payment made by the Board of Directors and may be paid up to a maximum of £2,500 to a beneficiary on the death of a member.
How does bereavement benefit work on my account?
In the event of your death, the credit union will pass the benefits to the person you have named as beneficiary or to your estate. You can change the beneficiary at any time, but the form must be witnessed by someone who will not benefit.
If making a claim, your family will not have to fill in an application form but must provide a FULL death certificate*; the credit union handles the paperwork for the family. Credit union staff will complete the paperwork to be submitted to the Board for assessment.
Savings
How much could my Beneficiary get from my Shares?
The amount depends on the balance in your account at the date of death. From age 16 until your 80th birthday your beneficiary/estate, at the discretion of the Board of Directors, may receive an additional 50% into your account up to a maximum of £2,500 and, if agreed, the credit union will pay this with the balance in your account.
Example 1:
Balance in the account £ 500
Discretionary Death Grant £ 250
Total Amount to be paid to Beneficiary £ 750
Example 2:
Balance in the account £5,000
Discretionary Death Grant £2,500
Total Amount to be paid to Beneficiary £7,500
Example 3:
Balance in the account £15,000
Discretionary Death Grant £ 2,500
Total Amount to be paid to Beneficiary £17,500
Are there any exclusions?
People with severe disabilities, permanent health conditions or illnesses also qualify for our free discretionary bereavement benefit. Exclusions may apply if members top load savings. However, all payments will be agreed by the Board of Directors in making any discretionary bereavement benefit payment to a beneficiary.
All bereavement benefit savings cover will cease at the members 80th birthday.
What happens if I stop saving with Caledonian Credit Union?
You will have ceased to be a member of Caledonian Credit Union if you have less than £5 in your account, the bereavement benefit will no longer apply.
If you have a balance in your account but have not paid into it for a long time, the Board of Directors may decide that you are a lapsed member and cover would be refused. Each case is looked at on its merits.
It is very important to continue paying in regularly to avoid being treated as a lapsed member; even a small amount each month will retain your eligibility.
Loans
How do the Loans cover work?
In the event of death, a claim* of the outstanding balance of the loan would be submitted to the Board for assessment. If approved, the loan balance would be cleared by the bereavement benefit fund. This free loans bereavement benefit is available for all members from the age of 18 up to the 80th birthday.
All bereavement benefit on loans will cease at the members 80th birthday.
Are there any exclusions on the Free Loans cover?
If you have been diagnosed with a terminal illness any new loan taken out after this diagnosis will be excluded from the bereavement benefit.
If your loan is in arrears and you have not paid into it for a long time, it may be decided that you are a lapsed member and cover would be refused. In this case, Caledonian Credit Union will make a claim on your estate. Any arrears will be deducted from savings.
This bereavement benefit means that people with severe disabilities or permanent health conditions get our free bereavement benefit on loans. The credit union believes this offers a huge benefit to people with impaired health, who may be unable to get life cover anywhere else or have to pay a high price to protect themselves.
Caledonian Credit Union undertakes to consider all loan applications.
Any member taking out a loan from 1st October 2015 must ensure that the loan would be cleared before the member reaches the age of 80 in order to be covered for bereavement benefit.
From 1st October 2015, no loan issued to anyone 80 years of age and over will be covered by free bereavement benefit.
If you have any further questions please speak to either a member of staff or a volunteer at The Centre, or call us on 01506 436666 or e-mail info@caledoniancu.co.uk
*Please be aware that the FULL DEATH CERTIFICATE MUST be presented to the credit union within ONE year of the date of death in order for bereavement benefit to be considered. A death certificate presented after this period will NOT be considered.
