Loan Protection

Life Savings Insurance

The credit union provides Life Savings Insurance cover on the savings of eligible members. The amount of insurance benefit depends on the amount of savings held in the credit union at the time of death and the member's age at the time of lodgement.

Savings lodged before age 55 years - 100% insurance bonus

Savings lodged 55 - 59 years of age - 75% insurance bonus

Savings lodged 60 - 64 years of age - 50% insurance bonus

Savings lodged 65 - 70 years of age - 25% insurance bonus

No insurance is payable on amounts saved after 70th birthday

Withdrawals after 70 can reduce total insurance amount

A member is eligible for Life Savings Insurance cover if they have joined the credit union before the age of 70 years and are actively at work or in good health at the time of lodgements. In certain circumstances a Declaration of Health form may be required.

The premium for this insurance is paid by the credit union and there is no extra cost to the member.

In addition to Life Savings Insurance and Loan Protection Insurance cover, Fairywater Credit Union also provides Death Benefit Insurance for all eligible members. DBI is offered without direct cost to the member, the CU paying it as an operational expense. In the event of the death of a member, a payment of an additional £2000.00 is made to the family of the deceased member to help to defray funeral expenses.


To be eligible for this insurance, a member must have joined the credit union before the age of 70 and must have been eligible for Life Savings Insurance.