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Payment Protection
The credit union offers two types of Payment Protection, Credit Life and Credit Disability. Credit Life protection will help you feel secure in knowing that it pays off the outstanding balance of an insured loan in case of an insured member's death. Have peace of mind with Credit Disability protection as it takes over the loan payment if an insured member becomes disabled. The credit union offers Credit Life and Credit Disability payment protection through Minnesota Life, one of the strongest insurers in the United States. When applying for a loan, please ask about these important protection options. Eligibility requirements, premium rates, and exclusions are detailed in the Credit Life/Credit Disability application. More Information
When credit union members take on a new financial obligation like a loan, they often ask about what would happen in the event of a death or disability. That's where Payment Protection comes in. Credit Life and Credit Disability can be a big help financially when difficult circumstances arise. To find out what your needs would be for Credit Disability or Credit Life insurance, click here. Have questions about Payment Protection, look through our Q& A. What is Payment Protection?Payment Protection is Credit Life or Credit Disability insurance that is directly tied to your loan. Credit Life insurance is designed to pay off the loan (or reduce it) if the borrower dies. Credit Disability insurance is designed to take over the loan payments if the borrower becomes disabled. The insurance helps protect your credit rating by making sure that the loan wouldn't end up in default if these events occurred.How is Payment Protection different from other kinds of insurance?Payment Protection insurance takes care of a specific need. It's designed to make sure a debt doesn't become a burden if the borrower dies or becomes disabled.How do you get coverage on your loan?At some time during the process of taking a loan, you'll be given a chance to enroll in the Payment Protection program. You'll also be informed of the cost. If you want Payment Protection, your insurance will become effective as soon as your loan is finalized and the first premium is paid.Why do people buy Payment Protection?It offers a convenient, affordable way to make sure your family or loved ones wouldn't be saddled with the burden of a debt in the event of death or disability. The cost is usually quite affordable.How is the cost determined?The cost of Payment Protection is determined by your loan balance, not by your age, as it is with most other types of insurance. Your premiums only reflect the cost to insure your loan. For convenience, your premiums are included in your loan payment.Who provides the Payment Protection?Payment Protection is underwritten by Minnesota Life Insurance Company, or, in some cases, other carriers. Ask your credit union for complete description of carriers and plans. Minnesota Life was rated A+ (Superior) by A.M. Best Company and AAA rating for claims paying ability from Standard and Poors.If you want to know more about Payment Protection, contact us and we will be happy to answer your questions. |
