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Credit life/joint life and disability insurance† protects you and your family in the event of unforeseen circumstances.
Credit Life/Joint Life Insurance
Credit life insurance helps ensure that your loved ones won't be saddled with loan payments if you die during the term of your loan.†† Your insurance premium is included in your loan payment, so you'll have one less bill to worry about. And you can insure a second person for less. With so many dual-career families, chances are you have a co-borrower on your loan. Now it's possible to obtain credit life insurance on a co-borrower at a reduced rate.
Disability Insurance
If you become totally disabled and cannot work, credit disability is designed to make your loan payments until you've recovered. And unlike some plans, benefits are paid whether you're hospitalized or not.
† Coverage provided by Life Investors Insurance Company of America, Cedar Rapids, Iowa 52499
†† Some limitations apply for suicide exclusion and pre-existing medical conditions.
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Eligibility |
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- Credit Life Insurance--Members who borrow money from the credit union through age 65. Co-borrowers are also eligible.
- Credit Disability Insurance--Members through age 65 who are actively employed at least 30 hours per week. Only primary members are eligible.
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| Summary |
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Northrop Grumman FCU credit life/joint life and disability insurance offers a variety of benefits to members:
Credit Life/Joint Life Insurance
- Protects family by paying off the loan in the event of the member's death
- Affordable premium is only a few cents per thousand dollars covered. Premium is $0.65 per
month per $1,000 covered, for single credit life insurance. For joint life, the premium is
$0.96 per month per $1,000 covered.
- Premium added to principal loan balance monthly and included in loan payment
- Loan balance is paid off up to a maximum of $50,000 per loan
- Does not affect other insurance coverages
- Group contract-guarantee issue
- Credit Union members have received millions of dollars in benefits from their loan insurance
policies
- Credit Life Insurance is optional and is not required as a condition for granting the loan
- Maximum loan term is 180 months
Credit Disability Insurance
- Makes loan payments in event of member's disability
- Premium is usually only a few cents a day per thousand dollars covered. Premium is $3.58 per
month per $1,000 covered. Disability insurance is available only to primary borrower.
- Monthly premium-pay as you go
- Does not affect other insurance coverages
- Must be disabled for more than 30 days; payment calculated from first day of disability
- Multiple loan coverage maximums apply to each loan individually
- Claim payment notification
- Effective on date of loan disbursement
- Group contract, guarantee issue saves time and money
- No worries due to minimal health requirements
- Credit Union members have received millions of dollars in benefits from their loan insurance policies
- Credit Disability Insurance is optional and is not required as a condition for granting the loan
- Maximum coverage is $90,000
- Maximum loan term is 120 months
- Maximum monthly disability benefit is $750 of your loan payment
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| Frequently Asked Questions |
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Credit Life/Joint Life Insurance
Q: I have plenty of life insurance. Why do I need more?
A: Insurance protects your family from specific risks. Credit life/joint life insurance is designed to pay off your loan in the event of your death.
Q: I don't have a lot of money. Isn't it too expensive?
A: Compare your monthly loan payment with and without this coverage. You'll find it to be quite affordable.
Q: I have good employee benefits. Why do I need this insurance?
A: Your employee benefit package is designed to help you meet day-to-day living expenses. Credit life/joint life helps your family meet your obligations on a loan in the event of your premature death.
Q: Why is insurance so difficult to understand?
A: We have simplified the insurance and made it part of loan processing so we can offer you this protection in the simplest, quickest manner possible. There is no need to deal with the insurance company because we do it for you.
Credit Disability Insurance
Q: I have sick leave through my employer. Why would I need more insurance?
A: Most sick leaves are for a limited period of time, typically 30 days. Credit disability insurance would begin just when you need it most.
Q: I'm already covered through Worker's Compensation (or ordinary employee disability insurance). Isn't that enough?
A: Worker's Compensation is designed to help meet living expenses and medical costs. It may not be enough to make your loan payments.
Q: I already have insurance coverage. Why do I need more?
A: You purchased insurance to protect your family from specific losses. Credit disability protects your family from taking on your debt while you can't work.
Q: We have two incomes. Why do we need insurance?
A: Most families' living standards are based upon two incomes. Credit disability allows you to maintain your standard of living during your period of disability.
Q: I'm young and healthy. Why do I need disability insurance?
A: Before the age of 65, there is a greater likelihood that you will become disabled for three months or more than it is that you will die. Credit disability protects you and your family in the event of disability.
Q: I don't have a lot of money. Isn't insurance too expensive for me?
A: If it seems difficult to add additional expense to your loan, imagine how difficult it would be for you or your family to keep up with the loan payments if something happened to you.
Q: I have plenty of other coverage. Why do I need more?
A: The insurance coverages you already have are designed to give you specific protection. With this coverage, you use this insurance for disability, and your other insurance for the purposes it was designed for. |