Consumer Loan Protection also known as Credit Life and Disability Insurance evolved from the concept that “No Debt Should Survive Its Maker or Ever Become a Burden to Others”. The concept of Consumer Loan Protection (Credit Insurance) is equally important to Borrower as it is to the lender making the loan.

A Consumer Loan Protection program provides a peace of mind and family security, and should be readily available to the Borrower at time of loan application and closing. With credit insurance, the Borrower knows that in the event of death or disability their family will be protected and their obligations met.


GROSS PAYOFF - CREDIT LIFE AND DISABILITY INSURANCE

The Gross Payoff Group Single Premium plan insures the loan principal plus the unearned interest for the entire term of the loan. The respective premium is added to and made a part of the loan, at the loan interest rate.

Death claim benefit payments, including up to two delinquent installments, for the Gross Payoff Plan require the insurance company to pay the total initial amount of the loan less any installments that have been repaid as of the date of death.
A death claim is essentially an early payoff by Credit Life Insurance. The unearned interest rebate computed on the Rule of 78’s would be included in the claim paid by the insurance company to the institution. This results in an excess of funds above the payoff figure, and the excess must be forwarded to the deceased's survivors or estate.

Exclusions may apply - See insurance certificate for details | Not available in all states | Rates may differ based on State

Benefits may differ based on State

*Not available in all states

 

NET PAYOFF - LIFE AND DISABILITY INSURANCE

The Net Payoff Group Single Premium Plan insures only the initial amount of the loan principal and does not include insurance on the total interest of the loan.

Death benefits under this plan will pay the outstanding balance of the loan as of the date of death, including up to two delinquent installment payments.

Exclusions may apply - See insurance certificate for details | Not available in all states | Rates may differ based on State

Benefits may differ based on State

*Not available in all states

 

CREDIT DISABILITY INSURANCE – “SICK & HURT INSURANCE”

If an insured becomes continuously disabled for as long as the stated waiting period within the policy, a daily disability benefit will be paid to the date the insured physician gives a Return-to-Work release, or the loan is discharged.