Payment Protection

Memorial Health 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.
  • 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.
  • 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 Credit Life
PLAIN TYPE 14 Day Retro    PREMIUM METHOD Level Rate
Max. Coverage Per Loan $30,000.00 Max. Coverage Per Loan $30,000.00
Maximum Term 120 Months Maximum Term 120 Months
Maximum Monthly Benefit $600 Rates SingleL $0.07/$100
Joint: $0.105/$100
Rate $2.80/$100
Age Requirement Under 66* Age Requirement Under 71*
Working Requirement 25 hours/week Working Requirement See Above
EXCLUSIONS Normal Pregnancy EXCLUSIONS 12 month suicude
At Work Clause

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.  
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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