Loan Payment Protection
Add peace of mind to your purchase
These solutions are designed to protect you and your good credit - just in case the unthinkable happens.
Payment Protection
With all the twists and turns of life, it is nice to know that should anything major happen, you won’t be left scrambling to pay your bills. To help you out in times of hardship, we offer credit life and credit disability Payment Protection. With this service, your monthly payment or outstanding loan balance will be paid by the insurance without penalty in the case of death, or disability.
credit life benefits:
In the Event of Death… Credit Life Benefits when protected borrower passes away…
Your loan payments or loan balance up to the contract maximum
credit disability benefits:
In the Event of Disability… Credit Disability Benefits when a covered disability occurs due to injury or illness…
Your loan payments up to the contract maximum
At the end of the day, we are just trying to make the rough parts of life a little bit smoother.
Guaranteed Asset Protection (GAP) PLUS
GAP is short for Guaranteed Asset Protection, but it really does take care of a gap in your insurance coverage.
A vehicle’s value declines as a result of depreciation, and your loan balance can be higher than the Actual Cash Value (ACV) which is established by your insurance company. GAP reduces or eliminates the added expense and pays the difference between the ACV of your vehicle, as determined by your insurance company, and the balance still owed.
Protecting your investment takes more than insurance. In fact, if the average new car buyer has their vehicle declared a total loss because it was stolen and not recovered, or damaged beyond repair, they could still owe thousands of dollars after the insurance settlement.
How it works:
You owe $14,000 on your vehicle, and it’s damaged beyond repair in an accident. After subtracting your deductible, the insurance company awards you $11,000 for the damage.
Without GAP, you would pay out of pocket to cover the remaining $3,000 loan balance.
Your loan balance $14,000
Your Insurance company pays $11,000
Loan balance (out-of-pocket expense) $3,000 GAP
If there’s still money owed, GAP may help pay the outstanding loan amount and a portion of your insurance deductible.
What isn’t covered by GAP? While GAP is useful, it doesn’t cover:
an extended warranty added to your car loan
maintenance or mechanical repairs for your vehicle
When is GAP useful? You should consider GAP if:
your loan had a zero or low down payment
you have a lease (this may be automatically included)
your car make and model depreciates quickly
you drive more than 15,000 miles a year (accelerating your car’s depreciation)
what is the “plus”?
The “PLUS” is an additional benefit of $1,000 towards your next vehicle loan at Eastern Indiana Federal Credit Union if financed within 90 days of the GAP claim settlement.
Is GAP worth it?
If you’re purchasing a car with little or no money down, or if your car loan has five or more years on it, you could benefit from GAP should anything happen to your car.
How can you buy GAP?
Many car dealers and auto insurance companies offer GAP, as well as some financial institutions. The cost can vary, depending on the value of your car and whether or not it’s a lease. In many cases, you’ll pay for GAP in one lump sum. Some companies offer GAP as a recurring monthly or yearly payment instead.
At Eastern Indiana Federal Credit Union, GAP can be purchased at a flat fee of $350 during your loan application process.
Is there a GAP in your coverage?
Your auto insurance may not be protecting you completely. Eastern Indiana Federal Credit Union’s Guaranteed Asset Protection helps you fill in the gap. Learn more about the benefits of GAP and enroll today.
Give us a call at 765-529-6632 to see if we can help you!