Free Life Cover

All Penny Post members have the option to ‘nominate’ a person (or persons) to receive their money in Penny Post, up to the value of £5,000, at the time of their death. This person is called the ‘nominee’ or ‘nominated beneficiary’. Having a nominee in place helps Penny Post Credit Union release funds with minimum documentation following the death of a member.

Where a deceased member has more than £5,000 in Penny Post, the first £5,000 will be paid to the nominee, and the remainder forms part of the deceased’s estate.

Please Note – Members can amend their nominated beneficiary at any time by completing a Nominee Appointment & Amendment Form. This can be done using the Nivo App. Contact our Customer Services team to check you registered nominee, to make changes, or for further information.

If a member has no nominee registered with Penny Post at the time of their death, the Bereavement Fund will still be paid, but forms part of the deceased member’s estate. Grant of Probate, Letters of Administration or Grant of Confirmation in Scotland, and a completed Indemnity Form may be required before funds can be released.

Mr A is a Penny Post member. At the time of his death he has £800 in savings and a £3,000 loan. Thanks to the Bereavement Fund, Mr A’s nominee would receive £1,600 (£800 savings, doubled) AND Penny Post will cancel the loan repayment.

Mrs B is a Penny Post member. At the time of her death, she has £20 in savings, and no loan. Thanks to the Bereavement Fund, Mrs B’s nominee would receive £500, the minimum pay out, even though her savings were £20.

Mr C is a Penny Post member. At the time of his death, he has £20,000 in savings and a £6,000 loan. Thanks to the Bereavement Fund, Mr C’s nominee would receive £5,000; the £20,000 savings will be part of Mr C’s estate. Penny Post will also cancel the loan repayment.

• Before a deceased member’s assets with Penny Post Credit Union can be paid to a nominee (or person/s named in a last will and testimony), Penny Post Credit Union will need to be in receipt of a death certificate. Other documentation may be required.
• The nominee must satisfy identification procedures to establish who they are, and complete an Indemnity Form.
• In the event of a legal challenge to a Bereavement Fund payment, payments will be suspended until the matter is settled.
• A payment from the Bereavement Fund will only be made if loan repayments are up to date, and there are no arrears at the time of the member’s death.
• Penny Post Credit Union will always endeavour to honour the Bereavement Fund pledge in full. In the unlikely event of the fund being exhausted, a notice suspending the Fund will be issued. However, funds held in a deceased member’s account will always be set aside for the benefit of the nominee or legal claimant.