(Provided through CUNA Mutual Insurance Group)

Credit disability insurance makes the loan payment should the borrower become disabled. The Credit Union does NOT pay anything toward the costs of this insurance. Borrowers should request this insurance coverage at the time a loan is made. A request for coverage can be made up to 30 days after the loan is made, but the borrower must sign a Subsequent Action form. Beyond 30 days, coverage may not be automatic, plus the member must submit a Statement of Insurability in addition to the Subsequent Action form.

The rate is 24.2 cents per $100 of the balance of the loan. Borrowers that elect to have this coverage will have the premium added onto the loan balance on the last day of each month. The premium is added to the loan payment and becomes less as the balance reduces. Each loan is separate and must be insured independent of other loans a member may have. And, the maximum total payment per loan is limited to $850 per month and $50,000 total.

Effective May 1, 2003, insurance coverage covers from the the date of disability rather than 30 days later. The insured must contact the Credit Union to start the claim process.

The insured must comply with all insurance company requirements regarding medical tests, checkups, certifications and documentation. Failure to do so will result in delay or disqualification of benefits. Coverage is limited due to pre-existing and pregnancy exclusions.

Coverage will be discontinued without notice for borrowers who let their loan(s) become delinquent by three or more months. The Credit Union is not responsible for notifying or reinstating this coverage even though the borrower may become current. The borrower must complete and submit a Statement of Insurability to reinstate this coverage.