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 estate.

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 outstanding.

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.


Share Balance:  £1256.00      Loan Balance:  £ 3350.46      Loan Arrears:  £108.50

The Death Benefit Scheme would pay £3350.46 LESS £108.50     i.e   £3241.96

The £108.50 would be taken from the Share Balance

giving a reduced Share Balance of  £1147.50 - which is available for distribution to the beneficiary. 



Ayn Rand

Money is the barometer of society’s virtue.

 A creative man is motivated by his desire to achieve,

not by his desire to beat others…..