What if I am 'run over by a bus' during the term of my loan?
"In this world nothing can be said to be certain, except
death and taxes"
This is a well-known statement from Benjamin
Franklin which is worthy of serious consideration by anyone who takes out any loan from any lender.
The death element can create a serious situation for the borrower's beneficiary(s) or dependants who will
find that any remaining loan balance will probably wipe-out any shares balance. If the borrower's
death takes place very soon after the granting of the loan then the shares will usually not cover all the
debt - maybe not much more than 1/4 of it! This could be a considerable burden on the deceased's
The Kilrea & District No.5 Credit Union Ltd has an
arrangement through the UFCU whereby the outstanding loan balance of a deceased member at the
time of death will be paid off automatically in full by their 'death
benefit scheme'. However if the loan is in arrears at this time the arrears
portion will NOT be covered - just that part of the loan that would have been normally still
Unlike many other institutions, Kilrea & District No.5
CU Ltd. do not apply a charge on the member's loan for this death benefit scheme.
£1256.00 Loan Balance: £
3350.46 Loan Arrears: £108.50
The Death Benefit Scheme would pay
£3350.46 LESS £108.50
The £108.50 would be taken from the Share
giving a reduced Share Balance of £1147.50
- which is available for distribution to the beneficiary.