MBP Administration

WHAT IS THE MUTUAL BENEFITS PLAN (MBP)?

The MBP is the co-operative way of pooling financial resources, in order to provide (1) Life Savings and (2) Loan Protection Benefits to credit union members. Ownership and control of the resources is retained within the credit union movement since the company offering this programme is owned by credit unions and the League.

HOW DO MEMBERS BENEFIT FROM THE MBP?

Members and their beneficiaries benefit by way of three benefit categories. They are:

1.    -  Life Savings

2.    -  Loan Protection

3.    -  Funeral Grants

         Members should take note of the fact that benefits listed hereunder are only available if the credit union participates in the MBP.

 

LIFE SAVINGS - DEATH BENEFIT

These benefits are payable on the death of a member. For every dollar saved by the member, the MBP matches this dollar up to a maximum of $25,000.00. However the amount of benefit is dependent on the age of the member at the date of death. A schedule of benefits is set out below:

 

Age of Member at Date of Death

Percentage (%) of Eligible Savings Entitled to Benefits

0 to 6 months

25

7 months to 54 years

100

55 years to 59 years

75

60 years to 64 years

50

65 years to 69 years

25

70 years or older

0

 

LIFE SAVINGS – ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) BENEFITS

AD&D benefits provided by the MBP are available to any member under the age 65 who suffers loss of life, limb or sight only as a direct result of an accident, provided that the loss occurs within 90 days of the accident. The maximum amount of the benefit is $25,000.00 but the actual amount of the benefit is detailed in the “Schedule of Maximum Benefits”.

 

FUNERAL GRANTS

In order to assist the family of deceased member in their time of loss, a Funeral Grant is available to assist in defraying the funeral expenses. The grant matches the savings of the member up to a maximum of $3,000.00. However this benefit is not available to members in cases where the credit union only insures loan balances.

 

LOAN PROTECTION – DEATH BENEFITS

Loan Protection Benefits are available where the deceased member has an outstanding loan at the date of death. The MBP pays in full the loan balance and accrued interest, provided that loan is free of delinquency at the date of death. The maximum benefit available is $500,000.00 and all benefits cease on the member’s seventieth birthday. A health declaration form is required for amounts of $200,000.00 and above.

 

LOAN PROTECTION – TOTAL AND PERMANENT DISABILITY BENEFITS

Disability is here defined as any physical impairment which renders the member totally and permanently unable to engage in any activity for remuneration. Other conditions are similar to the Loan Protection – Death Benefit, except that a member is not eligible for benefits after his/her sixtieth birthday. The maximum amount of the benefit is $500,000.00.

 

LOAN PROTECTION – TEMPORARY DISABILITY BENEFIT

In the event that a member becomes temporarily disabled by way of an accidental injury such as a sprain or fracture or such other condition as the insurer may determine, the MBP will pay three monthly loan instalments, up to a maximum of $3,000.00. The period of disability must be at least one month in order for the member to benefit.

 

JOINT MEMBERSHIP

Many credit union members now have joint accounts. The MBP can provide benefits to both members in a joint account situation at an additional cost to participating credit unions. In cases where the option to insure both joint members is not exercised, benefits are only payable to the primary account holder.

 

DO MEMBERS PAY FOR THESE BENFITS?

Unlike similar programmes, individuals do not pay for these benefits. On a monthly basis your credit union pays a premium to the plan to cover the costs of the benefits.

 

CLAIMS PROCEDURES

The credit union shall give written notice of death or commencement of disability within ninety(90) days and furthermore shall submit the claim within one hundred and twenty (120) days.

 Please note that this is not a contractual document and that conditions apply. Contact your credit union for further details.

 

SCHEDULE OF MAXIMUM BENEFITS

Benefit Category

Maximum Benefit

 

LIFE SAVINGS - DEATH BENEFIT

Death

100% of savings $25,000

 

ACCIDENTAL DEATH & DISMEMBERMENT (AD&D) BENEFITS

Death

100% of savings

$25,000

Loss of both hands or, eyes or feet

100% of savings  $25,000

Loss of sight of one eye

50% of savings $25,000

Loss of one hand or foot

50% of savings $25,000

 

FUNERAL GRANT

Funeral Grant

100% of savings $3,000

 

LOAN PROTECTION - DEATH BENEFIT

Death

100% of loan plus interest

$500,000

 

LOAN PROTECTION – TOTAL AND PERMANENT DISABILITY

Total & Permanent Disability

100% of loan plus interest

$500,000

 

LOAN PROTECTION – TEMPORARY DISABILITY BENEFIT

Fractured/Sprained Limbs etc.

3 monthly loan payments

$3,000

THE MUTUAL BENEFITS PLAN IS A PRODUCT OFFERED BY

CO-OPERATORS GENERAL INSURANCE CO. LTD. 

 

THE MUTUAL BENEFITS PLAN IS ADMINISTERED BY

BARBADOS CO-OPERATIVE & CREDIT UNION LEAGUE LTD.

 

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Contact Us

Barbados Co-operative & Credit Union League Ltd.
1st Floor, Co-operators General Insurance Building
Upper Collymore Rock, St. Michael, Barbados

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Tel: 246-429-7075
Fax: 246-436-5848

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