The amount of insurance benefit to which a member is entitled is in proportion to the amount of savings the member has made during the term of membership, and depends on the member’s age at date of lodgement.

Amounts saved after age 70 are not insured. However, cover built up before the 70th birthday remains in force as long as the savings are left in the credit union. Withdrawals will affect the amount of insurance payable in the event of a claim.

Additional benefit included at no cost to member.

Below is a working example of how withdrawals impact Life Insurance:

Sandra opens her Teachers’ Credit Union account aged 40 and saves £50 a month until she is 55, at which point her balance sits at £9000. She wishes to make a withdrawal for a big family holiday of £8000 reducing her balance to £1000.

How will this large withdrawal impact her Life Insurance?

Sandra will lose £8000 of life insurance by withdrawing this sum of money. This is because before the age of 55, anything lodged by her by way of savings was matched at 100% by the Credit Union in the form of Life Insurance accumulating an additional £9000. By making a withdrawal of £8000, she will retain £1000 of her Life Insurance but will lose anything more than this.

Can Sandra start to save again and replenish her insurance?

Yes, however as she is now aged over 55, anything she now saves before the age of 60, will only be matched at 75% by the credit union, instead of 100%. This rate reduces to 50% between the ages of 60-65 and 25% between the ages of 65 and 70. Life insurance will cease to accumulate once Sandra turns 70, but any large withdrawals will impact the level of Life Insurance attached to the savings she has made in prior years.

Teachers’ Credit Union always advises its members to call the office on 02890 309770 and speak to a member of staff if you are considering making a large share withdrawal. We will advise what impact this will have on your accumulated Life Insurance and help you make an informed decision.

Please note that every member will also qualify for additional Death Benefit Insurance paid at a rate of £1,500. To qualify for this benefit, you must retain at least £100 in your share account.