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.
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?
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; Enrollment procedures and eligibility requirements are simple and part of the loan process. In most cases, there’s no medical screening.
Do you know the risk of disability?
According to the Council for Disability Awareness, Long-Term Disability Claims Review (2014):
Could your family maintain its current standard of living if your income was eliminated or reduced? Could you make your loan payments?
Is Life Insurance Enough?
According to LIMRA, “Facts About Life 2013” (2013), 50% of U.S. households (58 million) say they need more life insurance.
When eligible debt is protected with payment protection, other life insurance can pay for other important things. Payment Protection can help provide your family financial freedom when they need it most.
Q. How do I file a claim?
Your purchase of Payment Protection is optional and will not affect your application for credit or the terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative, or refer to the Member Agreement for a full explanation of the terms of Payment Protection. You may cancel the protection at any time. If you cancel protection within 30 days you will receive a full refund of any fee paid.