Independence: Can you explain what a Debt Protection Program does?
J. Peskey: Life can throw us a curve ball at any time and when the unexpected happens, you don’t want a difficult or trying time to be compounded by financial worry. Debt Protection is coverage for your loan which may cancel your loan balance or payments if a qualifying event should happen.
Independence: What kinds of loans are eligible for debt protection?
J. Peskey: Consumer loans such as auto and recreational vehicles are eligible, but mortgage loans are not.
Independence: What kind of life events does it cover?
J. Peskey: The qualifying events may include involuntary (un)employment, disability, death, terminal illness, accidental dismemberment, hospitalization, family medical leave and death of a non-protected dependent.
Independence: Is this coverage mandatory?
J. Peskey: Your purchase is optional and does not affect your current application for credit or the terms of any credit agreement required to obtain a loan.
Independence: How is this product priced and how is the fee paid?
J. Peskey: Rates are dependent on the coverage you choose, but the program is budget friendly and comfortably fits into your monthly loan payment. To give you an idea, here is a breakdown based on the coverage, size of the loan and if it is a single or joint borrower.
• LifePlus Disability and Unemployment:
$0.309 per $100 single/ $0.530 per $100 joint
• LifePlus Disability:
$0.297 per $100 single/ $0.520 per $100 joint
• LifePlus:
$0.099 per $100 single/ $0.154 per $100 joint
Independence: When will this protection program be available to our members?
J. Peskey: The debt protection program was made available on April 1, 2022.
Independence: Can debt protection be added to an existing loan at the credit union?
J. Peskey: Yes, existing loans may add debt protection, but you may have to adhere to a waiting period.
Independence: How does this affect those who currently have Credit Life and Disability coverage on their loan at Dakotaland?
J. Peskey: Members who currently have credit life and disability will continue with their existing coverage and premium until the loan is paid in full.
Independence: How do we learn more about the Debt Protection Program?
J. Peskey: Your local Dakotaland consumer loan officer would be happy to answer any questions you may have or feel free to visit our website for more details at: www.dakotalandfcu.com.
