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A Guide to Debt Protection

Debt Protection

If you’ve recently purchased a car, secured a personal loan or opened a home equity line of credit, you may have been offered something called debt protection or payment protection insurance. If you’ve never heard of it before, you may have wondered, “How do I know if I need debt protection insurance?” We’re here to set the record straight on exactly what it is and why you might need it.

Understanding Debt Protection:

Debt Protection serves as a crucial financial safety net, offering relief during involuntary unemployment, disability, or in the unfortunate event of death. Debt protection is completely optional and is designed to safeguard your family’s standard of living and ease financial burdens during challenging times.

Benefits of Debt Protection:

  1. Seamless Coverage: Your monthly payment seamlessly includes the cost of Debt Protection, ensuring a convenient and hassle-free addition to your financial plan.
  2. Affordable and Accessible: With an affordable cost, Debt Protection is not just a smart financial decision but also easily accessible, putting financial security within your reach.
  3. Immediate Coverage: No waiting period – Debt Protection coverage begins immediately, providing peace of mind right from the start.
  4. Risk Reduction: Life’s uncertainties may be unavoidable, but Debt Protection helps reduce your financial risk by stepping in during challenging times.
  5. Monthly Payment Relief: In times of reduced income and higher expenses, Debt Protection can help cancel or waive your monthly payments, offering crucial relief.

Life Events and Debt Protection:

  1. Death of a Borrower: Debt Protection steps in to cancel loan payments or the loan balance, providing financial protection for surviving family members.
  2. Disability: For permanently employed individuals actively working, Debt Protection covers the time of illness or injury, canceling loan payments.
  3. Involuntary Unemployment: In the event of job loss, Debt Protection steps in, canceling loan payments for permanently employed individuals actively working.

Extended Protection with Life Plus:

For enhanced protection, Life Plus extends Debt Protection coverage, addressing a broader range of circumstances and providing added reassurance for your financial security.

  • Accidental Dismemberment
  • Terminal Illness
  • Hospitalization or Family Medical Leave
  • Death of a Non-Protected Dependent

How to Apply:

To add Debt Protection to a new or existing loan, simply reach out to us at (636) 916-8300 or visit one of our conveniently located branches.

Your family’s financial well-being is a top priority, and when unexpected situations arise, you don’t want financial worries to compound an already challenging scenario. Alltru’s Debt Protection offers a comprehensive solution, potentially canceling your loan balance or payments during involuntary unemployment, disability, or death. For more information or to check if your loan is eligible for optional Debt Protection, contact us at 636-916-8300.

Until next time,

Alltru Credit Union Employee, Chelsea Springli's Signature

Chelsea Springli