Debt Protection reduces your credit union’s risk by helping members avoid missing loan payments and providing you with another source of non-interest income.
Debt Protection for consumer, credit card, and home equity loans is an agreement between a member and a credit union that if the member dies, becomes disabled, becomes involuntarily unemployed or takes unpaid family leave, the agreement may cancel all or a part of your members' debt up to the benefit maximum.
What’s in it for you?
Business-building benefits. Requires no insurance licensing; safeguards your loan portfolio by helping prevent loan defaults; generates member-friendly non-interest income; allows you to select the appropriate features, benefits and pricing to meet members' needs
Comprehensive support. Quick and collaborative implementation; product education and training; online claims submission and inquiry; $1 million indemnification protection; compliance expertise; regulatory advocacy and more
Offer members flexible program parameters. Election can occur any time during the loan; no need to ask health questions (although these are available); Acts of War coverage included on loss of life and disability packages; protection on loans with terms of more than 120 months; no eligibility age limits versus 66 on competitive products; 25-hour workweek minimum for eligibility versus some competitors' 30-hour requirement
Greater efficiency. LOANLINER® Document Solutions and loanliner.com® lending technologies can incorporate the debt protection sale into the loan application for a seamless member experience; Lender Development Program® approaches bring consistency to product offerings in each lending interaction
* “Facts from LIMRA 2013 Disability Insurance Awareness Month”, LIMRA, 2013
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates.