The Loan Protection and Life Savings (LPLS) Plan

The provision of insurance coverage on members' loans and savings has become an integral part of the image of credit unions. Through the years this coverage has been provided through the insurance provider,CUNA Mutual, based in Trinidad. During 2004, the Board reviewed this arrangement and found that the credit union was well placed to bear the risk of providing this benefit to members internally.

The coverage was therefore transformed into an internally managed benefit scheme. All benefits to members remain the same. The waiting period for the settlement of amounts after a member's death however, has been greatly reduced. Members are encouraged to complete the Nominations Form naming the beneficiaries to their assets held in the Credit Union. This would further enhance the effectiveness of the scheme and reduce legal costs in the event of death.

Savings Protection

The Loan Protection and Life Savings (LPLS) Plan was designed to provide a guarantee to the beneficiary of a deceased member.

This benefit consists of the total of the accrued life savings at death and the insured benefit equivalent to the savings but not exceeding EC$13,500 of an individual.

Loan Protection

Loan indebtedness is waived up to $54,000 of the outstanding loan of which significant proportions are mortgage loans.

This facility is a group policy and is paid in settlement of amounts due on the death of the member-borrower.

Coverage on outstanding loans over the mentioned limit is secured by the borrower through the purchase of an insurance policy on his/her own life.