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Loyalty bonus from CUNA Mutual

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27 Jan 17

Credit unions in the Guaranteed ABCUL Pool for Loan Protection and Life Savings insurance can look forward to another loyalty bonus from CUNA Mutual.

This is the third year in a row that CUNA Mutual – the global credit union insurance provider – is issuing a loyalty bonus to credit unions in the ABCUL Pool, and these rebates have been delivered whilst rates have remained at 2013 levels for all participating credit unions.

Loan Protection Insurance covers credit unions when a member dies with a loan outstanding, which means the debt dies with the debtor and the estate is not pursued.

Life Savings Insurance means that credit unions that offer this benefit pay a single lump sum to a member’s nominated beneficiary upon death, which is based on the value of the member’s shares (or savings) in the credit union, and can assist family members with additional funds to support end of life expenses at the very time they need some comfort, support and assistance.

132 ABCUL-member credit unions are in the Pool and have these policies with CUNA Mutual to provide significant benefit and comfort to their members, and all those credit unions are eligible to benefit from the loyalty bonus.

Once again, the value of the bonus will equate to a rebate of a full month’s premium for January 2017, and will be paid to all eligible credit unions at the beginning of March 2017.

This third successive rebate means that credit unions in the ABCUL Pool will have shared a combined loyalty bonus worth in excess of half a million pounds since the launch of the programme in 2013.

The loyalty bonus is a great demonstration of the value of co-operation amongst credit unions, and for a number of credit unions, the rebate is actually greater than the amount they pay for their annual membership of ABCUL.

In other words, for many credit unions, the cost of ABCUL membership is almost entirely covered by this exclusive member benefit alone – and in some cases, it’s more than covered.

When the Guaranteed ABCUL Pool programme was launched in October 2013, ABCUL had tasked CUNA Mutual to deliver on three key areas:

  • To guarantee that ABCUL-member credit unions, regardless of size or situation, would be able to obtain affordable Loan Protection and Life Savings insurance.
  • Increase the simplicity of rates and benefits.
  • Provide credit unions greater peace of mind by increasing the stability of premiums, ensuring they remain affordable over the long term.

Every ABCUL member credit union at that time was given the option of joining the Pool. For those that chose not to, it made commercial sense to remain individually rated.

By creating the Guaranteed Pool, ABCUL enables credit unions to benefit from spreading the risk and avoiding peaks and troughs of claims performance at an individual level. This creates stability of rates, and means all participants benefit from this pooling of resources.

The programme has exceeded expectations on these objectives and – because it is offered by a mutual provider – the Pool’s good performance has seen these substantial loyalty rebates being paid to ABCUL-member credit unions.

ABCUL Chief Executive Mark Lyonette said: “Loan Protection and Life Savings Insurance give peace of mind to hundreds of thousands of credit union members and their families. We’re proud to work with CUNA Mutual to help credit unions affordably offer this vital service to people across Britain.

“The success of the ABCUL Pool is evidence that credit unions achieve more together, and the added bonus of this substantial loyalty rebate means this programme delivers outstanding value to our member credit unions.”

CUNA Mutual Europe Chief Executive Paul Walsh (pictured) said: “I’d like to express our thanks to all at ABCUL; to Mark, his team and the Board for working with us in making this a stronger and more sustainable protection programme that’s open to ABCUL credit unions, regardless of size.

“By creating a strong and robust pool of credit unions for Life Savings and Loan Protection by leveraging the scale of the combined ABCUL credit union group, CUNA Mutual have been able to provide all our credit unions with a fair, inclusive and sustainable benefits programme. This is strength through co-operation in practice.”

To be eligible, credit unions must be in the Guaranteed ABCUL Pool, and have submitted all due payments and reports up to and including January 2017, prior to 15 February 2017. CUNA Mutual will be writing to confirm each credit union’s specific rebate in due course.

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