When you open an account, you get free life & loan insurance.
Eastern Savings and Loans offers free life insurance on your savings and on your loan. The amount covered depends on your age when you put money into the credit union. Savings insurance has been designed to make the lives of families and next of kin easier in the event of death. A lump sum on bereavement can help towards funeral costs or could be left as a legacy for a loved one.
Your credit union loan balance could be paid off, so you needn't worry about passing on debt to your next of kin (terms and conditions apply). This benefit aims to fulfill one of the credit union movements principles by ensuring that the members debt dies with them. It is a unique benefit for our members, for which other financial service providers would charge you extra
Life cover protects and adds to your savings in case of death and repays your loan if you die before you have paid it off (Terms and Conditions apply).
The amount covered depends on your age when you put money into the credit union.
Insurance is paid on your shareholding at 100% of the amount saved between the ages of 18 and 64, and at 25% of the amount saved between the ages of 65-79.
There is no insurance on money saved under the age of 18 or over the age of 80. The maximum cover is £2,500.
How our free life insurance can help:
Further details: Download the Free Life Insurance Cover leaflet
Who is the scheme for?
The Free Life & Loan Insurance Scheme applies to members of Eastern Savings & Loans Credit Union who have been a member for a minimum of 6 months, and is provided at no direct cost to the member.
When is Life & Loan Insurance paid?
Life & Loan insurance is paid only:
How can Life & Loan Insurance be claimed?
We require an original death certificate and GP details before processing any claims relating to the deceased member. Claims cannot be processed with an interim death certificate. A medical report may be obtained from the GP regarding medical conditions.
Where do the deceased member’s funds go once approved?
Successful claims will firstly be used to clear any monies owed to Eastern Savings & Loans Credit Union, secondly be transferred to the beneficiary(ies) previously nominated by the deceased member for an amount up to £5,000.
If the funds in the deceased member’s account(s) exceed the amount of £5,000 any excess will be paid to the deceased member’s estate in accordance with Grant of Probate or Letter of Administration.
If beneficiary details have not previously been provided by the deceased member, the funds will be distributed according to current Testacy Law.
If I had a pre-existing medical condition, would this affect the benefit?
If the deceased member dies from a pre-existing medical condition, any new loan agreements and deposits made in the last six months before death are not covered by the insurance. The outstanding loan would need to be settled from the deceased member’s estate.
Are there any causes of death which may affect the benefit?
The free life & loan insurance does not cover death due to HIV/Aids, suicide, terrorism or war.
Once the claim has been approved, can the funds be withdrawn immediately?
Normally, however, the credit union may require a beneficiary to complete an Indemnity Form to certify that they are entitled to the funds, which are released in full and final settlement of the member’s property in the credit union.
Can the scheme be changed now or in the future?
The Board of Directors of Eastern Savings & Loans Credit Union has the discretion to alter, amend or withdraw the scheme at any time. The scheme that applies to a particular member is the one, if any, that is in force at the time of their death.