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Home > Insurance > Loan Protection Insurance |
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Loan Protection Insurance
For your protection, we make available optional Term Life and Disability
Insurance for Loans through CUNA Mutual Insurance Society. The
cost may be less than you would pay for similar insurance elsewhere.
You can choose
one or both types of coverage for all loans and lines of credit
except first mortgages, credit cards, and equity lines of credit and loans with a term of greater than
10 years For more information on payment protection on first
mortgages, contact a MEMBERS
Financial Services Representative.
What is Term Life Insurance for Loans?
Term Life Insurance for Loans generally pays off a loan (up to the insurance contract limit) if you die before your Virginia Credit Union loan is repaid.
What is Disability Insurance for Loans?
If you become disabled due to a covered accident or illness, Disability Insurance for Loans generally makes payments (up to the insurance contract limit) on your loan with Virginia Credit Union. You must work a minimum of 25 hours a week to select
this coverage.
| Coverage Selected |
Rate* |
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| Single Credit Life |
$0.055 per $100 |
| Joint Credit Life |
$0.091 per $100 |
| Credit Disability |
$.185 per $100 |
| *Initial premium rate.
This is the monthly rate x monthly outstanding loan balance
on the premium charge date. For example, if you elect single credit life
insurance coverage
and your loan balance is $5,000, the cost of insurance
that month is $2.75 ($0.055 x 50). The insurance premium is calculated
monthly and
added to your loan balance. |
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| Insurance Maximums |
Disability |
Life |
| Maximum monthly total disability benefit |
$850.00 |
N/A |
| Maximum insurance balance per loan account |
$50,000 |
$50,000 |
| Maximum age for insurance |
66 |
70 |
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Please contact us if you have questions or we can help you in any way. |
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