Loan Protection

CFCU offers various optional loan protection services to give you peace of mind in uncertain situations, including disability, involuntary unemployment, loss of collateral, and mechanical breakdowns.

Payment Protection

By electing Payment Protection on your loan, you can rest easy knowing you’re covered in life’s most unpredictable events. Payment Protection is offered by the credit union for a low monthly premium that can usually be added into your loan. Coverage options include:

LifePlus cancels the loan balance if a borrower passes away during the loan term. Coverage is up to 100% of the loan balance with a maximum of $100,000 or up to 25% of the loan balance with a maximum of $25,000 after your 70th birthday. Other coverage included with LifePlus:

  • Accidental Dismemberment
  • Terminal Illness
  • Hospitalization
  • Family Medical Leave

LifePlus Disability adds another layer of coverage by including Disability. If a borrower becomes disabled throughout the course of the loan, this protection can cancel up to 12 payments or up to $12,000.

LifePlus Disability & Unemployment is the ultimate coverage plan by protecting borrowers with LifePlus, Disability and Involuntary Unemployment. If a borrower experiences involuntary unemployment, this plan can protect the payments for up to three months and up to a maximum of $3,000.

Guaranteed Asset Protection

GAP protects you in cases when your vehicle has been deemed a total loss. The insurance settlement may not completely pay off the vehicle loan, but if you purchased GAP coverage, that remaining balance could be cancelled up to 125% of the vehicle’s value.

If you finance your replacement vehicle with CFCU within 90 days, GAP will extend the coverage and apply an additional $1,000 towards the new loan through a perk called GAP Advantage.

GAP is available for autos, ATVs, boats, and RVs at a low, one-time cost, starting at $595 – which can often be added to your loan amount.

Mechanical Breakdown Protection

MBP protects your vehicle from wear and tear. It covers costly repairs to your car and is accepted at repair shops nationwide. We have several options available to fit your vehicle and your budget. CFCU can typically add the price of MBP to your loan or you can pay for it out of pocket. You can purchase MBP at any time, even if your vehicle is paid for or financed with another lender.

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More Information

If you would like more information about our loan protection options, please contact us online or call 405.879.5600.