Help protect your loan and preserve your standard of living
Whether you’re taking out a loan to make home improvements or buy a vehicle, it can be a financial gamble because things happen…life happens. You’re betting you can pay back your loan and you won’t lose your job (through no fault of your own), or become disabled (due to injury or illness), or need to take family leave, or pass away, which could leave your family responsible for your loan balance. Life events can cause financial hardship, making bill-paying difficult. You don’t want delinquent payments and defaulted loans to cause you to lose your assets, negatively impact your credit rating, or cause financial distress for your family.
About 1 in 8 of today’s 20-year-olds will die before reaching age 67.1
Help play it safe
Payment Protection is a voluntary loan-payment protection product that helps you get relief from the financial burden of loan payments if a protected life event unexpectedly happens to you. Simple eligibility requirements help ease the enrollment process.
Just over 1 in 4 of today’s 20-year-olds will become disabled before reaching age 67.1
Protection that matters
If a protected life event happens to you (and you’re a protected borrower or co-borrower on the loan), Payment Protection will cancel or waive your loan payment(s), up to the contract maximums. Help lessen your worries, and your family’s worries, about paying loans during a time when your income may be reduced or lost and paying other household bills becomes challenging. Protected events include:
- Loss of life, including those caused by acts of war
- Disability, including those caused by acts of war
- Involuntary unemployment
- Family leave
Long-term unemployment (those jobless for 27 weeks or more) has accounted for more than one-third of the total unemployment since July of 2009.2
Your purchase of Payment Protection is optional and will not affect your application for credit or the terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative, or refer to the Member Agreement for a full explanation of the terms of Payment Protection. You may cancel the protection at any time. If you cancel protection within 30 days you will receive a full refund of any fee paid.
1 Social Security Administration, Fact Sheet, June 2013
2 Bureau of Labor Statistics, Databases, Tables and Calculators by Subject, June 2013