12 Jun

What is Debt Protection and Why do You Need It?  

Sudden, life-altering events can cause financial strain, like making loan payments difficult. Preparation for these unexpected incidents is always good. RMLEFCU provides debt protection insurance so you can be confident your annual loan payments will be canceled in the event of death, injury, or accidental unemployment.

Our debt protection program offers you six different options — that gives you the flexibility to choose the right Debt Protection package for you. Each option has specific requirements for eligibility and different benefits.

What Does It Cover?

Debt protection is a contractual agreement between RMLEFCU and your borrowers to cancel or suspend all or part of the obligation to repay a loan due to specific events such as death, disability, and involuntary unemployment.

Debt insurance covers up to 6 months of payments if you are mistakenly unemployed, up to 12 months if you are sick and disabled, and are unable to work, and the debt balance is entirely paid out in the event of life loss.

A nice thing about debt insurance is that it helps keep your current credit score because the program requires you to keep up to date with loan payments. In times of financial crisis, the policy will continue to pay your loans, so your credit score will not be affected.

Reasons to Get Protected

Debt protection is easy to get at a reasonable price. Costs for coverage are reflected in your monthly payment. Applying for debt insurance when applying for a loan is easy, and a good idea in general. The fee is usually included with a monthly loan payment, and immediate coverage begins.

It also helps to bring down your financial risk. Debt protection provides financial security for you and your family. It will protect your credit rating during times of uncertainty and stress and gives you peace of mind. You don’t have to worry about making any or all loan payments should there be an unexpected incident in life.

For complete details — including the monthly cost for each option — talk with one of our loan representatives today or call us at 303-458-6660. We can discuss this program with you, explain how it is different from traditional credit insurance.

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