What is Credit Protection?

Posted April 29th, 2019

Bad things happen. And, often, they happen out of the blue. Medical emergencies, hospitalizations, involuntary unemployment, disability, loss of life… while we hope these things don’t ever happen to you, DECU wants to be there in case they do. That’s why we offer Credit Protection on our loans.

Credit Protection is a way to have a worry free loan with DECU so you won't have to think about making a loan payment in times of trouble. It’s a service we offer, with four various plans, that pays for some or all of the remainder of your loan when life goes awry. Seems too good to be true, right? Let’s explore.

If you have a loan with DECU, you can add our Credit Protection at any time. If you don’t have a loan with DECU, what are you waiting for? Just kidding! But please give us a call so we can see if we can save you money.

Once added to your loan, Credit Protection is included in your monthly payment. The cost depends on the balance of the loan and which plan you choose. We offer life, disability, and involuntary unemployment. A small price each month is totally worth the safety and ease of not having to worry about loan payments while you’re in the hospital or if you’ve just lost your job. And, the coolest part, is that as you pay off your loan, the cost of coverage goes down.

You may be thinking, “I’m already paying on the loan. I don’t want to have to pay even more.” And that’s totally valid. That’s why our credit protector is optional – it’s completely up to you. However, it is easy to be annoyed with the small fee when you don’t need it, but even easier to be annoyed if you need the protection and it’s not there.

Because we know each person and family is different, we offer four plans so you can choose what’s best for you:

Option #1 Life Only

With this option, you’re protected against many common financial stressors. Your loan may be completely paid off in death, terminal illness diagnosis, and accidental dismemberment (loss of eye, foot, or hand). Three months of loan payments may be covered for FLMA, 48 hour+ hospitalizations, and the death of a dependent. Many like this plan because it relieves the stress of passing along debt to a family member. The 48 (or more) hour hospital stay is especially helpful for new mothers. One note though: this only includes the time you are admitted, so time spent in the Emergency Room is not included.

Option #2 Disability Only

This option protects you from various types of disability. If you are deemed unable to work by a doctor for at least 14 days, this option may cover up to 12 months of payments.

Option #3 Life and Disability

We offer a combination of both life and disability, which covers all benefits in both options.

Options #4 Life, Disability, and Involuntary Unemployment

Our last option includes both life and disability, with the addition of involuntary unemployment. This option may cover up to six months of payments if you become involuntarily unemployed.

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