|:: Payment Protection Insurance
Payment Protection Insurance is credit insurance that's directly tied to your loan. Credit Life Insurance is designed to pay off the loan if the borrower dies. Credit Disability Insurance is designed to take over the loan payments if the borrower becomes disabled. The insurance helps protect your credit rating by making sure that the loan wouldn't end up in default if those events occurred.
When you take out a loan from KPOCU, your Loan Officer will discuss the options available to you in the loan protection program. You'll also be informed of the cost. If you decide to take advantage of the low-cost benefit, typically you won't have to go through a long approval process or take a medical exam. Your insurance will become effective as soon as your loan is finalized and the first premium is paid. There is no obligation for 30 days to make sure that the coverage lives up to your expectations.
Typically, credit insurance at a vehicle dealership will cost three times as much as the cost at KPOCU. The cost of credit insurance is determined only by the size of your loan, not by your age, as it is with most types of insurance. Your premiums only reflect the cost to cover your loan. For convenience, your premiums are included in your loan payments.
Consider the benefits of Loan Protection Insurance - it's a great way to protect yourself and your family.