Credicare Fund Closure
Posted June 2021
Credicare Fund closure
You may already be aware that the Credicare Fund has been struggling with falling membership resulting in diminishing value and an increased number of payouts due to its older membership. The Credit Union Baywide Board has recently reviewed the scheme and after careful consideration, I can now confirm the closure of the NZCU South Credicare Fund as of 30 July 2021.
Funeral Plan insurance - exclusive offer to Credicare members
In an effort to offer our Credicare Fund members an alternative solution to protect your family, we have negotiated an exclusive initial offer of Funeral Plan provided by Provident Insurance. Members who choose to transition over to Funeral Plan and do so before 30 July 2021, will receive an exclusive offer of free Funeral Plan premiums for the first 3 months.*
Further information about Funeral Plan insurance by Provident is available here. If you wish to take out this Funeral Plan policy and receive your first 3 months premiums free, or would like more information, please contact my team on 0800 229 943 or complete the online application here.
Other options for Funeral Plan Insurance
Should you wish to consider Funeral Plan insurance, there are also a number of different options available from a range of insurance providers. It’s important that you carefully read through the terms and conditions of these policies and make sure that they meet your needs.
Information about funeral insurance is also available from other sources, including from a financial adviser or online, e.g. www.moneyhub.co.nz/funeral-insurance.
Why is the Credicare Fund closing?
In recent years there has been a steady decline in the number of Credicare Fund members resulting in less cover, and an increase in the average age of people contributing to the Fund. The number of claims is also rising. As a result, the Credicare Fund has become unsustainable. This very difficult decision was not taken lightly by the Credit Union Baywide Board of Directors, and we reviewed all possible alternatives. The need to adhere to increasingly complex compliance regulations add to the cost of administering the Fund.
As a member-owned cooperative, we take our members’ money very seriously and look to create cost-efficiencies wherever possible so we can continue to focus on our core offerings of everyday banking.
What to do next
If you wish to take out this Funeral Plan policy, or would like more information, please contact my team on 0800 229 943 to discuss.
Your Credicare cover will automatically cease on 30 July 2021, and no funds will be paid out for events occurring after that date.
Thank you for your continued loyalty and support of Credit Union Baywide, it’s greatly appreciated.