Insurance

Loan Protection Insurance covers eligible loans at no direct cost to the member. The loan could be completely cleared in the event of the member’s death. Members can take out a credit union loan confident that their dependents will not have to pay the loan off on death. Loans up to £10,000 receive Loan Protection Insurance providing the member is in good health when the loan is granted.

All unsecured loans must be paid in full before the Member’s 80th birthday.

When does loan protection not apply?

A new loan agreement is subject to a 6 month pre-existing condition limitation. This means should you die due to a pre-existing medical condition within 6 months of taking out the loan, loan protection insurance will not be applied and your shares will be used to clear the loan balance. Loan Protection does not cover death due to suicide, terrorism or war.

BAG Credit Union offers its Members a unique product, at no cost to the Member. Every pound which you save, up to the age of 65, in the event of your death is doubled (provided that you do not withdraw your savings). This applies to a maximum savings value of £10,000 and is payable to the person you have named on your nomination form.

Savings made between the ages of 65 and 79 still receive an insurance premium calculated at 25%.

Savings lodged on or after the member’s 80th birthday is not covered by insurance.