Life Savings Insurance is a valuable benefit we offer to our eligible members at no cost.
In the event of your passing, this insurance can provide your beneficiary with an additional sum of up to £10,000, alongside your accumulated savings.
The extent of insurance coverage is linked to the amount of savings held by a member, and it varies based on the member's age at the time of deposit.
Age-Related Coverage:
- Before the age of 65, every £1 saved equals £1 of insurance coverage.
- After turning 65, each £1 saved provides £0.25 of coverage.
For instance, if you saved £5,000 before turning 65, your coverage would be £5,000. If you continued to deposit £5,000 between your 65th and 80th birthdays, 25% of that additional amount (£1,250) would be covered, resulting in a total coverage of £6,250.
It's crucial to note that no insurance is applicable to savings deposited after your 80th birthday. To maximize coverage, members should prioritize building savings before reaching this milestone.
Coverage Limit:
Life Savings Insurance can offer dependents an extra £10,000 in conjunction with your savings upon your passing.
However, any savings surpassing £10,000 won't be covered.
For example, if you have savings of £11,000, only £10,000 would be paid out in the event of your passing.
This implies that your family would receive your £10,000 savings along with the additional £6,250 insurance, culminating in a total of £16,250.
A scenario where you save £10,000 before your 65th birthday and maintain that balance would yield the maximum insurance coverage of £10,000, in addition to your savings.
If you saved £10,000 before your 65th birthday and then deposited an extra £5,000 after turning 65, your family could receive a sum of £25,000 – comprising £10,000 insurance coverage and your £15,000 savings.
Loan Protection Insurance:
Sovereign Credit Union also extends Loan Protection Insurance to its borrowing members.
In the unfortunate event of an insured borrower's death or total and permanent disability for any occupation, the insurance ensures the loan is entirely repaid. Should a member eligible for insurance coverage pass away with an outstanding loan, the insurer covers the remaining loan balance.
During the loan application process, you will be informed if your loan exceeds the credit union's policy coverage. Basic death coverage under this policy concludes upon the member's 80th birthday.