If you’ve already got a loan but are looking for additional protection and peace of mind, we can set you up with valuable credit protection products like credit life and credit disability as complements to your existing loan.
Here at First Class American Credit Union, we offer all the services of a bank but are motivated by our members’ needs, not by profit. That’s why you can feel safe and confident partnering with us today on credit protection products for your loans, no matter how big or small. If you’ve got questions about the difference between credit life insurance and credit disability insurance, we can help.
Why Get Credit Life Insurance?
Credit life insurance is a policy that members can add on when they take out a loan. This add-on option is designed to pay the lender in the event the borrower dies before paying the loan off. The premiums are rolled into the debt for convenience, so you don’t have to worry about separate payments. This is also known as decreasing term insurance, where a policy is issued for an amount equal to what the borrower owes. The face amount of the policy goes down as the balance does. Credit life insurance essentially pays off the rest of the loan if you perish before it’s all paid off.
Why Get Credit Disability Insurance?
Credit disability insurance is very similar to credit insurance in that it pays the lender if a disability precludes the borrower from being able to pay off the loan. This essentially acts as a sort of health insurance policy, making payments to the lender if you are sick or disabled and can’t fulfill the loan’s obligations due to inability to work.
If you are interested in purchasing these important credit protection products for your loans, First Class American Credit Union can help you today. We can assist you with choosing the best products for your needs, making the process convenient and easy. We’re always looking for solutions to members’ questions, with creative attitudes to problem solving. Contact us or just stop in to one of our branches. We look forward to discussing your credit insurance options with you.