Credit Life/Credit Disability
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 |
| PLAN
TYPE |
14 Day
Retro |
| Max. Coverage
Per Loan |
$30,000 |
| Maximum
Term |
120 months |
| Maximum
Monthly Benefit |
$600 |
| Rate |
$2.80/$100 |
| ELIGIBILITY |
|
| Age Requirement |
Under 66* |
| Working
Requirement |
25
hours/week |
| EXCLUSIONS |
Normal
Pregnancy |
|
| Credit
Life |
| PREMIUM
METHOD |
Level
Rate |
| Max.
Coverage Per Loan |
$30,000 |
| Maximum
Term |
120
months |
| Rates |
Single:
$0.07/$100
Joint:
$0.105/$100 |
| ELIGIBILITY |
|
| Age
Requirement |
Under
71* |
| Working
Requirement |
See
above |
| EXCLUSIONS |
12
month suicide
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. |
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.
|
|
