Life Insurance Cover on Savings and Loans
As part of your membership, the credit union maintains a group life insurance policy that provides cover on eligible savings and loans. This cover is provided at no direct cost to you. Please note that mortgages are not covered under this policy.
How the Cover Works
Savings:
- Members under age 65: Cover up to the total savings balance, capped at £10,000.
- Members aged 65 and over: Cover up to £10,000, or the lowest savings balance held in your account since age 65 (whichever is lower).
Loans:
- Cover equal to the outstanding loan balance (including any interest due), up to a maximum of £30,000.
Important Things to Know
- The policy is held at a group level – members do not have individual life insurance policies.
- Benefits are subject to the insurer’s terms, conditions, and limitations. They are not guaranteed.
- Any benefits are paid directly to the credit union, not to individuals.
- The credit union will ordinarily pass benefits to the deceased member’s executor or legal representative for distribution in line with the will or succession laws.
- If the member provided specific instructions to us before death, we may settle benefits with another party.
- Death Nominations do not automatically apply to life insurance cover.
Key Takeaway
This life insurance provides peace of mind by helping to protect members’ savings and loans. However, the cover is subject to policy terms and is managed at the credit union’s discretion. Members should not view this as a substitute for personal life insurance.