Debt Protection

Why debt protection might be right for you

It helps protect your credit rating so you don't default on a loan, keeps things convenient by including the cost of coverage in your monthly payment, and reduces your financial risk so your family can focus on what matters most.

What is covered?

Depending on the plan you select, our debt protection plan cancels your outstanding balance if you pass away or your monthly payments for a specified period if you become disabled or involuntarily employed.

• Loss of life: Cancels the outstanding loan balance up to a specified dollar amount.
• Disability: Cancels up to a specific number of monthly payments.
• Involuntary unemployment: Cancels up to a specific number of monthly payments.

All benefits are subject to plan-specific maximums. Connect with your loan officer to learn more about specific coverage details.

Who is eligible?

You must meet the following to qualify for debt protection:

• Under 70 years old
• In the last two years, you haven't been advised of, or treated for, or taken any medication for heart attack (or other heart disease or disorder), coronary artery disease, cancer, stroke, cirrhosis, AIDs, or had a positive HIV test
• Presently working 25 hours or more per week
• Not self-employed

What else should I know?

A few key points of debt protection.

• This is entirely optional coverage, and it won't affect your application for credit
• You can cancel anytime. If you cancel within 30 days, any fees paid will be refunded
• Involuntary unemployment that occurs within 90 days after enrollment will not be covered
• Coverage details, benefit maximums, and exclusions are outlined in the sample addendum (PDF)

Learn how you can help erase your worries and protect your finances with debt protection. Reach out to a Loan Specialist at clc@firstlightfcu.org