| Credit Life/Credit
Disability
Altamaha Federal Credit Union offers its members Payment Protection
credit life and credit disability insurance through CUNA Mutual Group.
This coverage includes the following features:
- Credit Disability makes a member's
payment to the credit union if the member is unable to work due
to an illness or an accident. The premium is paid by the member
and insures the primary borrower or the co-borrower. After a 30-day
elimination period, benefits are payable from the first day of
disability forward.
- Credit Life pays off the member's
outstanding loan balance if the member dies during the term of
the loan.
- Credit Life "At Work Clause" –
If a member is a homemaker, retiree or student, they are eligible
for Credit Life Insurance only if they are performing all of the
usual duties of a homemaker, retiree or student in the normal
manner on the date of the initial advance and are not receiving
disability benefits from any source.
- Statement of Insurability: If an
eligible member requests insurance within 30 days after the loan
advance, they will be eligible for coverage if they provide a
satisfactory Statement of Insurability to CUNA Mutual.
- Expiration of Insurance: On the
date of death; on the date the loan is transferred to another
creditor; on the date the loan stops; on the last day of the month
the credit union is notified by the member to terminate insurance;
when the member reaches the maximum age; or the last day of the
month in which the loan is three months past due.
Features and prices of Payment Protection
are summarized below:
|
Credit Disability |
| PLAN
TYPE |
14 Day Retro |
| Max.
Coverage Per Loan |
$40,000 |
| Maximum
Term |
120
months |
| Maximum
Monthly Benefit |
$600 |
| Rate |
$0.28 per $100 of loan balance |
| ELIGIBILITY |
|
| Age
Requirement |
Under
66* |
| Working
Requirement |
25
hours/week |
| EXCLUSIONS |
Normal
Pregnancy |
|
| Credit
Life |
| PREMIUM
METHOD |
Level
Rate |
| Max.
Coverage Per Loan |
$40,000 |
| Maximum
Term |
120
months |
| Rates |
Single:
$0.07 per $100 of loan balance
Joint: $0.105 per $100 of loan balance |
| ELIGIBILITY |
|
| Age
Requirement |
Under
71* |
| Working
Requirement |
See
above |
| EXCLUSIONS |
12
month suicide
At Work Clause |
|
| *No
age maximum for credit card accounts |
Payment Protection:
Concerns and Benefits
If you're
like most people, you've probably heard arguments against buying credit
life or disability insurance. But take a closer look. Here are some
reasons people think they don't need credit life and disability insurance,
along with explanations of the real benefits of this coverage.
|
Concern |
Benefits/Features |
| I have other
coverage. |
Payment Protection will specifically
cover your credit union loan payment. That's one less worry
for you.
- The coverage you have now
may pay only 2/3 of your present salary if you are unable
to work due to an illness or an accident.
- Payment Protection
is designed for your loan, while other coverages are intended
for other obligations you have.
- It's very easy to enroll.
There's no physical exam and the cost is minimal.
|
| I'm healthy.
I don't need disability insurance. |
Accidents, not poor health,
are the leading cause of disabilities.
- Payment Protection
is designed for careful people like you. We can't control
the actions of others, and those actions may cause you to
become disabled no matter how careful you are.
- Did you know that an "accident
happens every 4 seconds and someone dies every 6 minutes
due to an accident"? (National Safety Council)
|
| It's too expensive.
|
You can't afford not to have
this protection.
- As your loan balance declines,
so will the monthly premium.
- An average disability lasts
six months. Compare the benefit of six monthly disability
payments with the total cost of Payment Protection.
The benefits far outweigh the premiums paid.
- You're free to cancel at
any time.
|
| We don't need
insurance. We have a dual income. |
What if something happens to
you and your spouse at the same time?
- Would you be able to meet
your day-to-day expenses if one of your incomes should happen
to stop or be seriously reduced?
|
| I'm just not
interested. |
Please think about this...
- This coverage will help protect
your collateral and your credit rating. Should you become
ill or have an accident, Payment Protection will
take care of making your loan payments while your are out
of work. You can concentrate on getting well, and not not
worry how your loan payment will be made.
- Payment Protection
will provide you with financial security and give you peace
of mind knowing your payments are taken care of.
|
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