IMPORTANT NOTICE TO ALL MEMBERS CONCERNING LIFE SAVINGS & LOAN PROTECTION COVERAGE

 After careful consideration of all the factors involved, we have found it necessary to revise the Loan Protection, Group Real Estate Mortgage and Life Savings Insurance programs covering the loans and shares of our members.  

This change does not immediately affect the insurance on loans granted prior to September 1, 2005.  All such insurable loans will continue to have coverage until:  

          1)       A closed-end loan is refinanced, repaid or otherwise liquidated or

          2)       The Loan Protection Policy is cancelled.  

All loans granted on or after September 1, 2005 will not be insured under the Loan Protection Policy.  

We have taken steps to make quality alternative insurance protection available to you with low cost MEMBER’S CHOICE® Term Life Insurance.  Term Life Insurance provides protection on your loan up to $35,000 and $75,000 on Purchase Money Mortgages, in case of the member's death.  Each member making a new loan or refinancing a loan may apply for this coverage, without providing proof of insurability, provided the coverage is applied for within 30 days of the date of the loan.  

On May 1, 2004 we made a change to the Life Savings Insurance which discontinued coverage on new deposits made on and after that date.  On September 1, 2005, the Life Savings will be revised by discontinuing the Life Savings Insurance for members who do not have $2,000 in their Regular Share and/or IRA Accounts.   

If your insurable balance falls below $2,000, your insurance will cease.  However, this insurance is subject to a 30 day termination notice and should not be considered permanent insurance.  

You will be provided with a new Life Savings Certificate of Insurance summarizing the terms of the credit union’s policy.  Any previous certificate should be destroyed.  

If you have any questions regarding this change, please contact our credit union office.  

                                                                   Sincerely,  

                                                                   Board of Directors

                                                                   SMEFCU