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Credit Life Insurance Credit Life coverage is an insurance policy designed to pay the outstanding balance of a member’s Credit Union loan, in the event of a borrowing member’s death. The monthly payment premium for coverage is added to the monthly payment and is sold on an optional basis. Coverage is offered on both open-end and closed-end loans.
Single or Joint Credit Life coverage is available. Single insures one borrower only, whereas joint coverage insures each of the two eligible borrowers.
Coverage limits:
- $50,000 maximum per loan
- Maximum loan term, 120 months per loan
- Under age 71
- Legally responsible for loan
- Excludes twelve month suicide, six month pre-existing condition
Credit Disability Insurance Credit Disability coverage is an insurance policy designed to pay a member’s Credit Union loan payments, in the event that the member is totally or continuously disabled. The monthly payment premium for coverage is added to the monthly payment and is sold on an optional basis. Coverage is offered on both open-end and closed-end loans.
Coverage limits:
- Maximum loan term, 120 months per loan
- $600 a month, per loan
- 14 day elimination period, benefits paid on 15th day of disability
- Under age 66
- Working minimum of 25 hours per week
- Legally responsible for loan
- Only one borrower may enroll
- Excludes normal pregnancy, self-inflicted injury, and 6 month pre-existing condition
Insurance products sold through the credit union are not insured by the National Credit Union Administration and are not issued, guaranteed, or underwritten by the credit union or the National Credit Union Administration or by any other federal government agency. There is no requirement or obligation to purchase insurance from the credit union or any subsidiary, affiliate, or particular unaffiliated third party as a condition to obtaining a loan, and a decision as to insurance agents will not affect the credit terms in any way. The credit union may not condition an extension of credit on any agreement not to obtain, or a prohibition on the applicant from obtaining an insurance product or annuity from any unaffiliated entity. The above mentioned products are not deposits. Top |
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