Credit insurance helps pay for covered debts during qualifying life events such as disability or death. It not only protects your finances, but it could give your loved ones greater peace of mind if the unexpected happens.
Types of credit insurance
The Credit Union offers both voluntary credit life insurance and credit disability insurance at the time you take out a qualifying personal loan from LGFCU. You can opt to add this coverage only at loan origination.
Loans that qualify for coverage
Both credit life and credit disability insurance are available for Signature Personal Loans, Share Secured Loans, New Auto Loans and Used Auto Loans. For Term Note loans, only credit life insurance is available.
Credit insurance is not available for Salary Advance Loans, credit cards, or real estate secured loans.
Options and features
Your options include single or joint credit life and single credit disability coverage with the following features:
- Maximum monthly insured loan payment coverage is $600.
- Maximum claim benefit for credit life and credit disability is $50,000.
- Coverage ends on the last day of the month in which the covered borrower reaches age 70.
- You can cancel credit life and credit disability insurance at any time, for any reason, by written request. Cancellation will not affect the regularly scheduled loan payment amount.
- If you cancel this insurance within 30 days, you will receive a full refund. All refunds are applied to the outstanding principal loan balance.
Additional information about credit disability
Credit disability insurance is not available as a stand-alone option. You must select it in conjunction with single or joint credit life insurance. Credit disability insurance is available only for primary borrowers who work 25 hours or more per week.
Your resources: Loan Information Checklist