Payment Protection

Taking out a loan means one of your dreams is about to come true—a new car, boat, or home improvement project. But what happens to your dream when the unexpected occurs? How can you make sure your family doesn’t shoulder the financial burden of making loan payments when you can’t? With Payment Protection, you don’t need to worry about what will happen if the unexpected strikes.

What is Payment Protection?

Payment Protection is a voluntary debt cancellation agreement between you and WESTconsin Credit Union. Depending on the package selected, it can cancel the principal and interest portion of your loan payment, up to the agreement maximum, in the event of death, disability due to a protected illness or injury, or involuntarily unemployment.

Fees are based on a group rate and you buy only enough protection to cover your loan balance. Tying protection directly to your loan means you’ll have exactly the right amount of protection—no more, no less, and that saves you money. Payment Protection can help you avoid the risk of delinquency, default, repossession, or damage to your credit rating should you become ill or injured.

This is a summary of our Payment Protection program. Enrollment in the program is voluntary and not required to obtain a loan. Payment Protection is a debt cancellation product available through WESTconsin Credit Union. Please contact your WESTconsin Credit Union loan representative, or refer to the Payment Protection Contract for additional information on benefit maximums, eligibility, and limitations. B2ML-0508-CADC

 

Frequently Asked Questions:

Is Payment Protection expensive?

The fee is specific to the amount and term of your loan and the protection package you select. Protection ends when the loan is repaid.

Why should I consider Payment Protection?

  • Helps protect you and your family against financial hardship should the unexpected occur
  • Helps protect your good credit rating and loan collateral
  • Reduces the financial burden on your family should you die, become disabled, or lose your job
  • Easy enrollment, simple eligibility requirements, and fees are included in monthly loan payment
  • Immediate enrollment for eligible borrowers
  • Can protect up to two borrowers per loan

Why would I need this protection on top of my employer’s disability benefits?

Employer disability benefits packages may cover only a portion of your salary or offer no protection at all. Could you meet all your obligations on your employer’s disability benefits if you were off work due to illness or injury for more than a month?

My spouse works. Why should I get Payment Protection?

Lifestyles and budgets become accustomed to two incomes when there are two breadwinners in the household. Are you willing, or financially able, to live without one of the incomes for three or more months? If one income is larger than the other, would the smaller income be enough to meet the basic living expenses of you or your family?

Do I have to go through any qualifying procedures?

No; we make it easy. Enrollment procedures are quick and easy and are part of the loan process. Eligibility requirements are simple, and in most cases, there’s no medical screening.

Do you know the risk of disability?

According to the National Safety Council, Injury Facts, 2007 Edition:

  • 69% of disabling injuries suffered by workers occurred off the job
  • Every 13 seconds an American is injured in an automobile accident
  • Every four seconds an American is injured in their home

Could your family maintain its current standard of living if your income was eliminated or reduced? Could you make your loan payments?

  • 63% of workers have no short-term disability coverage (National Compensation Survey, U.S. Department of Labor, 2006)

  • 50%-60% employer long-term disability typically pays only 50% to 60% of salary (American Council of Life Insurers Website)

  • 32% of Americans say they have just enough, and sometimes not enough money, to meet their basic needs (Pew Research Center Survey, 2006)

  • 46% of Families filing bankruptcy have experienced a medical-related problem (Health Affairs, Market Watch, 2005—Based on 2001 Consumer Bankruptcy Project Data)

How much life insurance do you need?

  • Ten times your annual income is recommended by the American Council of Life Insurers (2005)

Q. How do I file a claim?

  • Contact your local credit union office. We will assist you by initiating the claim with CUNA Mutual Group.

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