Insurance
Life Savings Insurance
Life Savings Insurance is the life insurance cover the Credit Union provides for its eligible members as an additional incentive for them to save regularly. The amount of insurance benefit to which a member is entitled is in proportion to the mount of savings the member has, and depends on the members age at date of lodgement.
Insurance Cover provided on savings:
| Age | Savings | Insurance Cover |
| Under 55 | Every £1 provides | £1 of insurance |
55 - 59 | Every £1 provides | 75p of insurance |
60 - 64 | Every £1 provides | 50p of insurance |
65 - 69 | Every £1 provides | 25p of insurance |
Savings lodged on or after the member’s 70th birthday are not covered by insurance, Members pay no individual charge. | ||
Example:
Age | Insurance | Total | |
£100 saved under | 55 | +£100 | +£200 |
£100 saved between | 55 - 59 | +£75 | +£175 |
£100 saved between | 60 - 64 | +£50 | +£150 |
£100 saved between | 65 - 70 | +£25 | +£125 |
£100 saved | 70+ | +0 | +£100 |
Eligible Savings are those that
- are lodged before age 70 up to a maximum of £15,000,
- remain intact in your account, and
- are lodged whilst you were at work or, if not working, in good health.
Death Benefit Insurance
£2,500 is member paid with deduction taken annually in January (premium changes each year and member is notified in advance through their AGM letter) members need to sign a form to allow us to deduct the premium from their Share account.
Every eligible member is automatically covered by Death Benefit Insurance if they
- have a minimum of £1 in their savings
- continue to pay the annual contribution
SAG Credit Union would encourage all members to complete a Death Nomination Form. This form allows you to nominate a person(s) or group on the event of your death to receive your savings and death benefit (if eligible). This form is available at the Loans Department and must be completed in the presence of a credit union employee, director or volunteer, as it must be legally witnessed to be valid. On this form, you will be asked to name the person, persons or charitable group you wish to receive your shares or portion of your shares in the event of your death. SAG Credit Union can disburse amounts up to £20,000 to the person(s) or group nominated upon request. (Probate must be extracted on amounts over £20,000.)
By completing this nomination, you can be assured that the person(s) or group you intended to receive your shares will receive them without red tape or delay. You must update your nomination if you marry, divorce or if the person nominated dies before you. In addition, a properly completed Form of Nomination takes precedence over a will. As you go through the course of your life and update your will, make sure you update your nomination too! You may change your nomination as often as you like and you may name more than one person or group as your nominee
Loan Protection Insurance
Loan Protection Insurance is provided to members at no direct cost to them. This product clears your outstanding loan balance in the event of death subject to policy conditions. In the event of your death, ECCU (the credit union assurance company) will clear your loan balance -- it will not have to be paid off from your savings or by your family!
Every borrowing member is eligible for Loan Protection Insurance if they are:
- actively engaged in the usual duties of his/her livelihood on the date they receive the loan, or
- if not working, that they are in good health and capable of performing the usual duties of their livelihood on that date.
Insurance cover on loans ceases at age 85. Members pay no individual charge.
Not a Member? No problem
There is no need to wait around, you can start saving and borrowing with SAG Credit Union as soon as you sign up.
