by Chelsea Springli 
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
Debt Protection can help relieve you and your family from a debt burden when certain life scenarios prohibit you from affording your payments. Here are the perks of Debt Protection.
Seamless Coverage
Your monthly loan payment seamlessly includes the cost of Debt Protection, ensuring a convenient and hassle-free addition to your financial plan. It’s one less payment you have to keep track of.
Affordable and Accessible
Debt Protection is here to make managing debt easier, not harder. With an affordable cost, Debt Protection is not just a smart financial decision but also easily accessible, putting financial security within your reach.
Immediate Coverage
There’e no waiting period when you sign up. Debt Protection coverage begins immediately. As a result, you’ll have peace of mind right from the start.
Risk Reduction
Life’s uncertainties may be unavoidable, but Debt Protection helps reduce your financial risk by stepping in during challenging times. It’s like a safety net for you and your family when the worst case scenario becomes a reality. 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
When you sign up for Debt Protection, your payments will be wrapped into your monthly loan payment. Hopefully you never have to use it. If these unavoidable situations were to happen, your Debt Protection coverage will kick in to help.
Death of a Borrower
If a borrower were to pass away, Debt Protection steps in to cancel loan payments or the loan balance. This provides financial protection for surviving family members.
Disability
For permanently employed individuals actively working, Debt Protection covers the time of illness or injury, canceling loan payments.
Involuntary Unemployment
In the event of job loss, Debt Protection steps in. It cancels the loan payments for permanently employed individuals actively working.
Extended Protection with Life Plus
For enhanced protection, the additional Life Plus coverage extends Debt Protection coverage. Debt Protection with Life Plus addresses a broader range of circumstances and provides more reassurance for your financial security. Debt Protection with Life Plus covers the following scenarios in addition to the normal Debt Protection coverage.
- 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. We’ll walk you through your options as well as the cost for your loan.
Stay Financially Safe
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.
