Loan Protection/Life Savings Cancellation Notice

SMFCU is committed to offering our members the best service possible. In order to continue to meet this commitment, we are making some changes to help better manage our expenses and align services with your needs. Effective July 31, 2011, we are canceling our Loan Protection and Life Savings Insurance group policies underwritten by CUNA Mutual Insurance Society (CUMIS). Below are options to replace these coverages.

Loan Protection

This insurance has been provided at no direct cost to you for eligible member loans. All coverage will cease on July 31, 2011. Please destroy any CUNA Mutual Loan Protection Certificate of Insurance you may have in your possession at that time. We have taken steps to make quality alternative insurance protection available to you with MEMBER’S CHOICE®

Credit Life Insurance, underwritten by CUMIS. This insurance provides protection in case of the member’s death. To make the transition to Credit Life Insurance as easy and simple as possible, we have arranged with CUNA Mutual Group a 30-day open enrollment period to apply for this insurance. Prior to August 31, 2011, you may complete a Credit Life application for existing loans without providing proof of insurability. Please call 617-625-0898 for an application.

For new and refinanced loans made on and after August 1, 2011, no proof of insurability is required if an application for Credit Life coverage is applied for within 30 days after the date of the loan. However, all eligibility requirements must be met at the time coverage is applied for.
 

Life Savings

This insurance has been provided at no direct cost to you for eligible share deposits up to a maximum of $1,000 per member. Coverage on existing insurable deposits will end on August 31, 2011, the last day of the conversion period. Please destroy any CUNA Mutual Life Savings Certificate of Insurance you may have in your possession at that time.

We know many of you value the peace of mind and security that life insurance provides. That’s why we wanted you to know you can convert your Life Savings coverage to a Primary Protection Plan, underwritten by CUMIS. This new plan is a member pay, whole life plan up to $1,000. If you apply within the stated time period, there are no age restrictions, waiting periods, exclusions, or health questions. If you convert, your new policy will be effective September 1, 2011, and premiums will be based on whole life insurance rates for your age on that date.

Conversion is simple. Just request, complete, and return an application with your first premium payment directly to CUMIS by August 31, 2011, in order to receive coverage. To request a quote or application for the Primary Protection Plan offered by CUMIS, call them directly at 1-877-636-2377 to speak with a fully licensed insurance representative. The insurance sold through CUMIS is not a deposit and is not federally insured or guaranteed by your credit union. Policy number: 020-0064-2. Please contact our credit union office with any questions.