Personal Loan Insurance

Life Insurance for Mortgages

Mortgage life insurance is the least expensive way to have a replacement income.  The cost for a 35-year old male with a $100,000 mortgage will average about $13 per month.  The policy you hold is what the insurance industry calls term or creditor insurance.  You pay premiums for the coverage for a specific term or length of time, such as a 20 or 25-year mortgage. Once the mortgage is paid, your financial risk has ended, so the policy ends too.

With this insurance on your mortgage, your family’s biggest debt is turned into its strongest asset.  Considering that term insurance is the least expensive way to provide for your family’s financial future, it makes sense for just about everyone to do so.  It’s even more sensible for families with high mortgages.  With all the financial pressures your family may face in the event of an untimely death, mortgage life insurance can relieve much of that pressure.  It means your family can live mortgage-free.

Life Insurance for Loans

Loan insurance operates much the same as insurance on mortgages.  You have the coverage during the time of your debt.  Once you have paid that debt, your need for protection has ended and so your policy ends too.  If you should die during this loan period, your coverage pays off the loan.  Any other insurance you might have can go directly to your survivors rather than it being used to pay the loan.

Because a loan consumes part of your income, there is value in having a plan to eliminate that loan.  Then, money once set aside for loan payments is back into your family’s hands.  The cost for loan insurance is typically very reasonable. A few dollars can pay off a loan of thousands and most loans and borrowers are eligible for full coverage.  Ask your loans officer for details on the policy in place at Lakeland Credit Union.

Life Insurance for Lines of Credit

Many people enjoy the flexibility of a credit union line of credit.  Whether it’s used to pay for car repairs, a holiday, or home renovations, a line of credit is a valuable financial tool.

While slightly different than traditional borrowing methods, a line of credit is a loan and still carries financial risk.  Problems can occur when the line of credit debt remains but your income is reduced or lost, so the need exists to protect those around you from the financial stress of your debt.

With life insurance on your line of credit, you remove the financial burden of future payments from your spouse or family.  Rather than money leaving your family each month to meet your line of credit payment, your family has extra funds available to meet more important needs.

Ask your credit union lender for details on the life insurance product available for lines of credit.

Critical Illness Insurance for Mortgages

Today, the odds of beating a critical illness are better than ever.  Almost 80 percent of people under age 55 who suffer a heart attack will survive.  Three of every four persons who suffer a stroke will live.

While that’s all great news, the reality is that living with life-threatening cancer or after a heart attack or stroke is never easy.  Everything you and your family have worked for and earned is suddenly at risk.  You might be unable to return to work or have to manage on less income or face new expenses like private homecare.

With critical illness coverage for your mortgage, you’re free from your largest debt.  If you’re diagnosed with life-threatening cancer, suffer a heart attack or stroke, the policy pays for mortgage balance in full.

Critical illness protection for your mortgage can help you save your savings.  Without coverage, a life-threatening illness could mean using your savings for mortgage payments.  If you saved five percent of your income for ten years, your savings could be lost in just six months of serious illness if you had no other means of income.  You can keep your savings and end your mortgage payments by choosing mortgage critical illness coverage.

Disability Insurance for Loans

No one, including you, knows the odds of suffering an injury or illness that keeps you from working.  With this uncertainty, you should be mindful about how loan debts increase your monthly expenses and financial risk.  If you should become temporarily or permanently disabled and unable to work, you may lose part or all of your income.

A big reason why you received the loan was because your income indicated you could repay the debt.  While disability could take away your income, it doesn’t stop your loan payments.  Meeting the loan payments with less income could cause you financial stress.  You might have savings to fall back on, but years of savings could be lost when your income is cut short by a few months of disability.

With disability insurance on your loan, you can replace part of your lost income and reduce your financial stress.  Usually, the insurer makes the loan payment on your behalf.  The amount of the payment and the length of time the insurer will make the payments can vary.  Ask your loans officer for details on the policy in place at Lakeland Credit Union.

Please contact us if you have any questions or want to become a member.


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