Life Savings Insurance is an integral part of the credit union’s member promise. It was created as a support to aide Credit Unions reward its members for depositing money into shares and maintaining these share balances over time.
Life Savings provides the member’s family with a single lump sum payment to cover end of life expenses, in the event of the member’s death. The value of this payment is directly linked to the member’s savings behaviour and balances. Generally, the more the member saves, the higher benefit payment. However, there are specific limits and conditions set by each credit union in respect of the required savings behaviour and levels of benefits.
There are two broad categories of CUNA Mutual’s Life Savings Insurance those that calculate benefits based on the age the member lodged their savings (known as Age of Deposit programs) or those that calculate benefits based on the age the member dies (known as Age of Death programs).
Member savings are the lifeblood of Credit Unions. Without member savings, the Credit Union’s ability to lend to other members is greatly diminished,. Promoting a ‘savings culture ‘and positive savings experience is an essential part of the Credit Union model.
CUNA Mutual’s Life Savings Insurance is designed to reward members who save, and thereby assisting Credit Unions in encouraging a positive savings habit and experience.
Offering Life Savings insurance forms an integral part of the savings proposition for Credit Unions and is a great way to differentiate the Credit Union from traditional financial organisations.
Members can bequeath the savings and Life Savings benefits, built up over time through the credit union’ to their beneficiaries. This assists family members with additional funds to support end of life expenses at the very time they need some additional support and assistance.