Richmond Community FCU
 
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Payment Protection

Eligibility
· Under age 66, at age 66 member is no longer eligible
· Actively employed 25 hours per week, two weeks prior to loan date

Health Statements
· CONSUMER LOANS: Required for ALL loans where member or co-debtor decide to add insurance coverage 30 days after the original effective date or date of advance. (CU1623)

Termination
· Age 66 - Monthly Collection, Open-End, Credit Card
· When debt is discharged, renewed, or refinanced
· When requested
· When debt is transferred or assigned or in default
· When the group policy terminates

Plan Type
· 14 day Waiting Period
· 14 day Elimination Period

Coverages - Consumer Loans
· $600 per loan-Maximum Monthly Payment
· $40,000 per loan-Maximum Coverage
· 120 months Maximum Term

Exclusions
· Beyond scheduled maturity date
· Pre-existing conditions (6x6)
· Normal pregnancy
· Intentionally self-inflicted injury

Costs
· Monthly Collection - Open-End and Credit Card Loans: $2.00 per $1,000 per month of the total of the outstanding indebtedness

June 1998

Insurance Underwritten by Life Investors Insurance Company of America under group policy Forms LP1295.

Eligibility
· Under age 71, at 71 member is no longer eligible

Health Statements
· CONSUMER LOANS: Required for ALL loans where member or co-debtor decide to add insurance coverage 30 days after the original effective date or date of advance. (CU1623)
·
HOME EQUITY/LINE-OF-CREDIT LOANS: Required on ALL Loans. (CU1623)

Termination
· Age 71 - Monthly Collection
· When debt is discharged, renewed, or refinanced
·
When requested
·
When debt is transferred or assigned or in default
·
When the group policy terminates

Plan Type
· Single Life available for primary borrower
· Joint Life available for co-borrower/spouse

Accidental Dismemberment
· Amount of insurance in force will be paid in the event of an injury which causes; the loss of sight of one or both eyes; the loss of one or both hands at or above the wrist; the loss of one or both feet at or above the ankle.

Coverages - Consumer Loans
· $40,000 per loan-Maximum Coverage
· 120 months Maximum Term

Coverages - Home Equity/Line-of-Credit Loans
· Maximum Coverage: $50,999 per loan
· 120 months Maximum Term

Exclusions
· Death resulted from suicide within six months of the effective date of the loan or advance.

Costs
· Monthly Collection (Open-End, Credit Card and Home Equity/Line-of-Credit) Loans: $0.70 (single)/$1.05 (joint) per $1,000 per month of the total of the outstanding indebtedness


Why Member's Need Payment Protection Disability Statistics
1.  The risk of being disabled for three months or more is greater than dying; 4.9 times greater at age 35, 3.29 times greater at age 45.
2.  Under Social Security, the first six months of disability are not coved.A person is not eligible for disability payments unless the condition is expected to continue for at least 12 months.
3.  Workmen's Compensation covers only on-the-job injuries, and the benefit is based on 755 of the average state wage.


Sources:1.1985 Commissioners Disability Table 2. &3: 1988 Employee Benefits, Burton Beam Jr. & John McFadden, Professors at American College in Pennsylvania.

Benefits of Payment Protection
  • Convenient -The cost of coverage is included in the loan payment
  • Helps pay your monthly payment if you are sick or hurt and unable to work.(waiting period applies)
  • Saves time, stress and money when purchased at the time of financing.
  • Benefit payable even when other insurance is in-force
  • Reduces member's financal risk
  • Provides security and peace of mind for your family
  • Protects credit rating and collateral