What is Credit Disability Insurance?
• Credit Disability Insurance: In the event you become disabled due to an accident or sickness covered under this optional policy, UNFCU will continue making payments towards your UNFCU loan. Only a primary borrower is eligible for this coverage. If you decide to enroll, you will be charged a premium. Costs: Once you enroll, a credit disability monthly premium will be added to your outstanding loan balance. The premium is equal to 92 cents for US $1,000 outstanding loan balance. For example, if at the end of the month your loan balance is US $5,000, a US $4.60 premium will be added.
Comment: Credit Disability Insurance makes your loan payments (up to the policy maximum) if you become disabled by a covered sickness or accident which persists beyond the policy waiting period. Buyer Question: Should I buy Disability Insurance? Comment: It is an individual decision based on weighting the financial risk and hardship of paying off the amount of your vehicle loan, which can be several thousand dollars, should you become disabled and unable to work verse the cost of buying Disability Insurance. The good news is Disability Insurance is relatively cheap. Buyer Question: Should I let the dealership bid on my Credit Disability Insurance? Comment: Absolutely … If the dealership offers a better deal, take it and save some additional money. Just be aware dealerships have a reputation for charging significant premiums for Disability Insurance. The same or more coverage can usually be obtained from your insurance agent or over the Internet for significantly less. The following ste
Credit disability insurance is insurance designed specifically to cover all or part of a debt if the borrower becomes disabled to the point where his or her ability to work is totally diminished. Unlike credit life insurance, credit disability insurance may pay for all or part of the debt, depending on the type of disability. Credit disability insurance usually goes into effect once an individual is disabled by sickness or injury for 30 days or more. The insurance will cover monthly payments from the time the insured is deemed totally disabled and unable to work. It is important to note that an insured individual does not need to be permanently disabled in order for a policy to go into effect. Unlike credit life insurance, credit disability insurance does not pay the entire loan balance if a claim is made. Instead, the policy only makes monthly payments until such time as the insured can make enough of a recovery to resume earning income. If an individual is totally disabled for the li
