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Life Membership Explained
Life Membership Scheme
This scheme provides life assurance benefit payable on death; it also provides shares at 2 per unit for any surplus valuation declared by the Society.
Contributions are paid throughout the lifetime of the member.
Minimum entry of 20 units, but additional units can be any number up to the maximum of 100.
Cost of units depends on age examples as follows: - Age of entry 16yrs. to 70yrs.
Age 16 to 20 = 6p per unit, Age 36 to 40 = 10p per unit, Age 51 to 55 = 14p per unit, Age 66 to 70 = 25p per unit
Exact cost will be given on request. Management cost included in above is 4p per unit for all ages.
Benefits are as follows:-
£24 per unit payable on the death of the member.
£20 per unit payable on the death of the member’s first spouse if they predecease the member.
£10 per unit payable on the death of the member’s second spouse if they predecease the member.
Plus shares in any Society valuation as described below.
Every three years a VALUATION* of the Lodge is carried out and any Surplus is divided among the members as follows:-
Each unit = 2 shares, therefore 20 units = 40 shares
These shares are multiplied by the number of complete months since entry up to a maximum of 120[10 years]
Therefore a member with 10 units and 24months since entry would have: - 2 x 20 x 24 = 960 shares
All members’ shares are added together and divided into the amount of surplus available to give the value of each share.
This amount is then calculated for each member and entered into a Members Lodge account called the
MEDICAL account.
The member then has the option to transfer 50% of the Valuation amount into a further account called the MEMBERS INTEREST account.
MEDICAL account
This account can be used by the member towards the whole or part payment of cost of His/Her expenses for:-
Dental treatment, Optical treatment,
Medical and Convalescent costs,
Family Bereavement,
Distress and Chiropody Treatment.
MEMBERS INTEREST account
This account receives a yearly interest set by the Lodge Committee.
A member can withdraw from this at any time by applying in writing to the Lodge Secretary.
Request for payment from MEDICAL ACCOUNT must include a receipt for amount paid; the amount paid to the member will be decided by the Lodge Committee at the monthly meeting [held 1st Tuesday of each month].
*Valuations cannot be guaranteed and past performance is not an indicator of future performance.