What is debt protection?
We can’t predict what life has in store, but we can take steps to protect against the unexpected. In the case of death, disability, or involuntary unemployment our debt protection program may cancel your monthly loan payments or even the loan balance without penalty or added interest.
Debt Protection (DP) Event Options and Cost
| Life | Disability | Involuntary Unemployment | DP Fee is per $1,000 of the Monthly Outstanding Loan Balance | |
|---|---|---|---|---|
| Option 1 | Yes | Yes | Yes | Single: $3.26 Joint: $5.29 |
| Option 2 | Yes | No | Yes | Single: $2.44 Joint: $4.10 |
| Option 3 | Yes | Yes | No | Single: $3.09 Joint: $5.18 |
| Option 4 | Yes | No | No | Single: $0.78 Joint: $1.31 |
Cancel at any Time
You may cancel the Debt Protection coverage at any time. If you cancel within the first 60 days, we will refund any fees already paid.
Click the Key Term for a Full Description
Death Debt Protection Coverage
Death Debt Protection provides a protected payment to Encurage Financial Network to cancel all or part of the credit obligation in the event of a protected death during the term of Debt Protection coverage. (Available with all Options)
Limits:
- Maximum Protected Balance per Loan – $75,000
Disability Debt Protection Coverage
Disability Debt Protection provides for cancellation of monthly payments to Encurage Financial Network in the event you become disabled as a result of an eligible sickness or injury during the term of Debt Protection coverage. (Available with Options 1 & 3)
Limits:
- Maximum Protected Balance per Loan – $15,000
- Maximum Number of Protected Monthly Benefits – 12 per Occurrence
- Maximum Protected Monthly Benefit – $1,000
Involuntary Unemployment (IU) Coverage
IU Debt Protection provides for the cancellation of monthly payments to Encurage Financial Network Credit Union in the event you become involuntarily unemployed during the term of Debt Protection coverage as a result of layoff, general strike, termination by employer, unionized labor dispute, or lockout. (Available with Options 1 & 2)
Limits:
- Maximum Protected Balance per Loan – $15,000
- Maximum Number of Protected Monthly Benefits – 6 per Occurrence
- Maximum Protected Monthly Benefit – $1,000
Benefits of Debt Protection
- Convenient – The cost of coverage is included in the monthly payment
- Helps reduce financial burden
- Provides coverage even when other insurance is in force and at a time when income might be reduced and expenses higher