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Debt Protection |
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Real Protection for Real-Life Events |
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Debt Protection Eases Your Loan Payments, Protects Your Family and Safeguards Your Credit Rating. |
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Smart financial security because... |
| Life is unpredictable. Debt Protection, offered by Lockheed Federal Credit Union, helps relieve the financial stress and worry related to making loan payments when your life takes an unexpected turn. |
| Here's how Debt Protection works. Your consumer loan payment* will be cancelled with¬out penalty, added interest, or being reported as delinquent to the credit bureau when one of the covered events occur: |
- Death - gives your family time to get back on its feet financially.
- Disability - helps you avoid bills piling up as you try to regain your health and earning capacity. Use as a supplement to any disability coverage you may have at work (which usually covers only 60 percent of pay).
- Involuntary Unemployment - gives you assurance during a difficult time that one of your major monthly expenses will be taken care of as you search for new employment.
- Family Leave - helps your family with a major monthly expense during what is often an unusually hectic time - a leave from your job for family or medical reasons.
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Lockheed Federal Credit Union offers three Debt Protection options. |
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Option 1 |
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- Death cancels the remaining loan balance as of the date of death - up to a maximum of $50,000 - in the event of death.
- Disability cancels loan payments for up to six consecutive months per incident - up to $ 1,000 per month - if disability occurs during term of loan. Maximum benefit is 12 months.
- Involuntary Unemployment cancels loan payments for up to three consecutive months - up to $1,000 per month - if involuntarily unemployed during the term of loan.
- Family Leave cancels up to three monthly loan payments if the covered borrower takes a Family and Medical Leave Act (FMLA) leave from his or her job.
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Option 2 |
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- Disability cancels loan payments for up to six consecutive months per incident - up to $ 1,000 per month - if disability occurs during term of loan. Maximum benefit is 12 payments.
- Involuntary Unemployment cancels loan payments for up to three consecutive months - up to $1,000 per month - if involuntarily unemployed during the term of loan.
- Family Leave cancels up to three monthly loan payments if the covered borrower takes a Family and Medical Leave Act (FM1.A) leave from his or her job.
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Option 3 |
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- Accidental Death cancels loan balance as of the date of death. $50,000 maximum. Death must be due to an accident.
- Accidental Disability cancels monthly loan payment each month for as long as you are disabled - up to the remaining term of the loan. Disability must be due to an accident.
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| No obligation for 30 days |
| When you apply for Debt Protection, you have 30 days to review your plan. If you are not satisfied with the program or if your situation changes, you can cancel it at any time. If you do so within the first 30 days, any fees paid will be refunded. |
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| A Benefit for our Members |
| We've designed our Debt Protection program for you because it fits the times we live in today. More than ever, we all worry about things that might happen tomorrow. Debt Protection provides an important sense of financial security - letting you worry less and sleep a little better at night. |
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| Please consult with one of our loan representatives to discuss our Debt Protection program in more detail. Or, call us at (800) 328-LFCU. |
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| Disclosures |
- This product is optional - Your purchase of Debt Protection is optional. Whether or not you purchase Debt Protection will not affect your application for credit or the terms of any existing credit agreement you have with Lockheed Federal Credit Union.
- Additional Disclosures - We will give you additional information before you are required to pay for Debt Protection. This information will include a copy of the contract containing the terms and conditions of Debt Protection.
- Eligibility Requirements, Conditions and Exclusions - There are eligibility requirements, conditions and exclusions that could prevent you from receiving Dehr Protection ben¬efits. You should carefully read your Debt Protection con¬tract for a full explanation of the terms and conditions of the Debt Protection program.
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| CU-13642 (5M 12/2003) 19824 | | |
