If you\u2019ve ever applied for a loan, there\u2019s a good chance you\u2019ve been asked about adding credit life or credit disability insurance to your loan. Your response? \u201cNo thanks.\u201d In some cases, you don\u2019t need it. But in some cases, it\u2019s worth a second look.<\/p>\n\n\n\n
Before you can decide if it\u2019s right for you, it\u2019s important to understand what this coverage is and how it could benefit you.<\/p>\n\n\n\n
If you pass away and your claim is payable, credit life insurance will pay off or greatly reduce your eligible loan balance. This leaves less financial stress for survivors who may be left having to figure out how to pay off your loan balance.<\/p>\n\n\n\n
With Credit Disability Insurance, if you\u2019re disabled from work due to injury or illness, your monthly loan payments will be made, up to the monthly benefit maximum, until you\u2019re no longer disabled, your loan is paid, or reach the policy maximum.<\/p>\n\n\n\n
\u201cThat\u2019ll never happen to me.\u201d Perhaps not, but over the past year, we\u2019ve seen a huge uptick in members who have been injured on the job and who have contracted COVID-19, leaving them unable to work for some time. Many who opted in for insurance on their loan benefited from the protection during the time they were unable to work. Sadly, others did not opt-in and were left with just one more financial stress to navigate.<\/p>\n\n\n\n
What about worker\u2019s compensation, that should cover you, right? You\u2019re 66% right. Keep in mind that worker\u2019s comp only pays a portion of your paycheck. Could you cover your living expenses and pay all of your bills on just 66% of your income? You may also have short-term and long-term disability coverage, but keep in mind that the waiting periods and percentages paid are similar to worker\u2019s comp.<\/p>\n\n\n\n
When opening a new loan, reviewing insurance products offered in conjunction with the loan you should always ask yourself \u201cWhat does this product do for me?\u201d If you have a loan and opted to not receive coverage, it may not be too late to add it. It\u2019s only too late when you need it and don\u2019t have it. Often you can add coverage after the loan is closed. If you still have questions about these options or if it\u2019s right for you reach out to us at the credit union. We\u2019ll walk you through the benefits and help determine if it\u2019s right for you.<\/p>","protected":false},"excerpt":{"rendered":"
If you\u2019ve ever applied for a loan, there\u2019s a good chance you\u2019ve been asked about adding credit life or credit disability insurance to your loan. Your response? \u201cNo thanks.\u201d In some cases, you don\u2019t need it. But in some cases, it\u2019s worth a second look. Before you can decide if it\u2019s right for you, it\u2019s […]<\/p>\n","protected":false},"author":2,"featured_media":454,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"\n