Our Bereavement Fund

What is it?

For many years, Beacon Credit Union paid for an insurance on the behalf of our members which covered shares and loans. As will all insurance products there were tons of exclusions and clauses which meant that some members couldn’t get any coverage. Our Board decided that we could do things better ourselves, so we set about creating our own Bereavement Fund and whilst it’s not an insurance, it is something we are able to provide for our members, though there are still terms and conditions.

 

The Bereavement fund is in place to support your loved ones should the worst happen to you. We have tried to make it all as simple and clear as possible, read on to find out more.  You can visit our page to find out what to do when a member dies

 

What is covered?

The fund covers both shares and loans for our members. Though exclusions do apply.

Shares

The Bereavement Fund covers 100% members shares up to £5,000 up to the age of 64.

From the age of 65-79 cover is reduced to 25% of shares, with a maximum cover of £5,000

For members aged 80 and over, Beacon’s Bereavement Fund will may a payment of £500 to the nominated person.

New members also benefit from instant coverage of £500 from the day that they join. Existing members are also covered with a minimum payment of £500 if your shares are below that value.

Exclusions

Members who are in arrears on any loan products are not covered by the share portion of this fund and their shares will be used to reduce the value of the loan.

Any deposits above the usual and regular payment amounts are excluded if made in the six months prior to death.

Members must have at least one share deposit in to their account in a 12 month period, unless they have reached the maximum share holding Beacon have instructed them that they are unable to save any further funds.

Loans

If a member passes away, we’ll clear any outstanding Beacon loans—so their loved ones aren’t left with debt. It’s automatic, free, and built into our promise to put people first.

Because when you join Beacon, you’re not just taking out a loan—you’re joining a community that looks after its own.

There is no limit to this fund, so all over your loan amount is covered.

Exclusions

If your loan is in arrears, any shares you may have will be used to reduce the value of your loan before the fund will clear the balance.

What are Nominees

Credit Unions are in a position, thanks to the Co-operative and Community Benefit Societies Act 2014 to be able to pay the first £5,000 to who ever you wish to pay. Usually these funds must go to whoever you name in a will, or if you don’t have a will, your legal next of kin. Common Law partners have no legal claim to your estate.  If you marry or form a civil partnership after you tell us about your nominated person, your spouse will automatically become your nominated person, you should still let us know, as if we are not made aware, we will still pay out to the originally nominate person, as per the act.

That’s why we ask for nominees, so your money can go to the person you want it to go to.

What about savings over £5,000

The Communities and Society Act makes provision for the first £5,000. We want to make it as simple as possible, where anything up to the next £5,000 we will pay to the legal next of kin as stated under intestacy laws, you can read more about that on our When a Member dies page. If the remaining savings are over £5,000 then probate will be required for the full amount.

Can I update my Nominee

Of course you can, get in touch via our contact page, once we verify it’s you we can send you a link to update it via our website. It’s really simple and easy to do.

What if I want to leave more money to my nominee?

If they’re your legal next of kin, great, we can pay out a further £5,000 if they are the person who is entitled under Intestacy Laws. If not, the only way to do this is to make a will. We are unable to make payments to a common law spouse or anyone who isn’t legally entitled to your estate.

Can I leave my money to my kids?

We are only able to pay out to people over the age of 18, if your children are 18 then it’s not a problem. If they aren’t you will need to nominate someone who you trust to handle this on their behalf.

What if I have a will?

The first £5,000 in your account is unaffected by a will. Anything above and beyond the first £5,000 will be paid to the executor of the will.