The cover is designed to encourage insurable members to build their savings with their credit union and if the member requires funds, the member is encouraged to take a loan rather than withdrawing their savings and thus maintain their savings intact and insured. The amount of an eligible member’s savings that are insurable is referred to as the “Insurable Balance” and is made up of all lodgements made before a members 70th birthday or the lowest balance.
Member’s savings lodged to their credit union share or deposit account is insurable until the member reaches their 70th birthday.
There is no further Life Savings cover on additional savings lodged. There are no age extension limits for Life Savings cover similar to Loan Protection cover.
Share Withdrawals
Under the Life Savings policy if a member withdraws shares this may reduce their accrued insurance entitlements. The percentage of LS cover applicable to an account depends on the age of the member when the savings were lodged. Set out below are the percentages of cover that apply subject always to the maximum LS cover limit chosen by the credit union:
| Age 55 | The insurable savings balance held at age 55 or the lowest insurable balance thereafter until date of death attracts 100% LS cover. |
| Age 55‐60 | The additional savings made between ages 55 and 60, or the lowest balance thereafter until date of death, that additional amount attracts 75% LS cover. |
| Age 60‐65 | The additional savings made between ages 60 and 65, or the lowest balance thereafter until date of death, that additional amount attracts 50% LS cover. |
| Age 65‐70 | The additional savings made between ages 65 and 70, or the lowest balance thereafter until date of death, that additional amount attracts 25% LS cover. |
| Age 70+ | any savings made after a members 70th birthday attract no further LS insurance cover. |
