Rainbow has a group life insurance policy for members. This means you do not have to fill in an application form and Rainbow handles the paperwork in the event of a claim.
Group policies are fairer to members as there are few exclusions. The insurance will provide your family with a lump sum payment which can help them to cover funeral expenses.
In the event of a claim, Rainbow needs a copy of the death certificate and can pay the beneficiary quickly at a difficult time, no need to wait for Probate. The insurance company has a good record of speedy settlement with Rainbow.[wpfilebase tag= “file” id=25 tpl=”singlefile” /]
In the event of death, Rainbow will pass the benefits to the person you named as Beneficiary. You can change the beneficiary at any time, the form must be witnessed by someone who will not benefit.
The maximum cover is currently £5,000
How much would your beneficiary get?
The amount claimed depends on the balance in your account at death and your age when you paid it in – not your age at death.
For savings deposited before the age of 65 the insurance will add 100%
For savings deposited between the ages of 65 and 79 the insurance will add 25%.
For savings deposited after the age of 80 no extra insurance is payable.
The maximum cover is £5,000.
John is aged 50 when he joins the credit union. He saves £5 per month until his death at 85 yrs. The total amount saved was £1,980. The amount saved between the ages of 50-64 gained him £840 extra from the insurance. The amount saved from age 65 -79 gained him £210 extra from the insurance. The total added to his savings from the insurance was £1,050. His beneficiary received £3,030 in total.[wpfilebase tag= “file” id=25 tpl=”singlefile” /]