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Atlanta City Employees 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. After a 30-day elimination period, benefits
are payable from the first day of disability forward.
- 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.
- Statement of Insurability:
If an eligible member requests insurance within 30 days
after the loan advance, they will be eligible for coverage
if they provide a satisfactory Statement of Insurability
to CUNA Mutual.
- 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 |
30
Day Retro |
Max.
Coverage Per Loan |
$30,000 |
Maximum
Term |
120
months |
Maximum
Monthly Benefit |
$600 |
Rate |
$2.80/$1,000 |
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:
$0.70/$1,000 Joint:
$1.05/$1,000 |
ELIGIBILITY |
|
Age
Requirement |
Under
71* |
Working
Requirement |
See
above |
EXCLUSIONS |
12
month suicide
At Work Clause |
|
| *No
age maximum for credit card accounts |
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.
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