Insurance
Mutual 1st Federal offers several loan protection products for the benefit of our
members:
We offer three insurance products intended to benefit you and your family in the
event you become disabled, unemployed, use FMLA time or pass away. The insurance
products are provided through Minnesota Mutual company Securian, which ranks among
the nation's largest life insurance companies. They have consistently earned an
A+ (Superior) rating for financial stability from A.M. Best Company, and AAA rating
for claims paying ability from Standard & Poors. Generally all loan products we
have can be covered with the exception of 1st mortgage loans.
What is the Mutual Protection Plan? The Mutual Protection Plan
cancels a borrower's loan payment(s) for a specified amount of time in the event
of Death, Disability, Involuntary Unemployment or Family Leave.
What are the benefits for covered events?
- Death: Cancels the remaining loan balance as of the date of death
(up to $50,000).
- Disability: Cancels up to the remaining term of the loan (up to
$1,000/monthly).
- Involuntary Unemployment: After a 90-day waiting period, cancels
up to six monthly payments or remaining term of the loan *up to $1,000/monthly)
per occurrence; maximum six payments cancelled over the term of the loan even if
multiple unemployment period occur.
- Family Leave: After a 180-day waiting period, cancels up to three
monthly payments (up to $1,000) if the covered borrower takes a Family and Medical
Leave Act (FMLA) leave from his/her job; maximum three payments over the term of
the loan.
Why should I buy it?
- To relieve your family/co-borrower from loan re-payment should you die, become disabled
or unemployed or need to take a FMLA leave.
- To allow your family/co-borrower to keep the products/services for which the loan
was used without having to use insurance funds from your other plans to make payments
or pay off the loan.
- To develop a more comprehensive protection plan for you or your family.
- To protect your credit rating should one of the covered events occur.
What about premiums?
Our low premiums are conveniently added to your monthly loan payment.
Premiums go down as the loan balance decreases (for each $1000 decrease).
What information is required?
In most states there are only three simplified eligibility questions pertaining
to health and unemployment/FMLA history. If the loan is within the maximum amount
allowed, and you answered "no" you are guaranteed coverage once the loan is disbursed.
Let us know when placing your loan application if you would like this insurance
coverage!
What is Credit Disability Insurance?
Insurance that reduces or takes over the monthly loan payments if you were to become
disabled and are unable to work.
Benefit paid directly to Mutual 1st Federal.
Why should I buy it?
- To relieve yourself of loan payments and financial worry if you become disabled
and can't work.
- To allow you to use benefits from other disability plans for other monthly obligations.
- To allow you to keep the products/services for which the loan was intended.
- To protect your credit rating should you become disabled and have a loss of regular
income.
What about premiums?
Our low premiums are conveniently added to your monthly loan payment.
Premiums do not increase with age.
What is considered a disability?
Generally, if you are unable to engage in any occupation that you are suited for
by age, training or experience, due to injury or sickness, you are considered disabled.
The exact definition of disabled will be provided on your insurance certificate.
If, after recovery from total disability, you become disabled again within three
months, you will receive immediate coverage without any waiting period.
Let us know when placing your loan application if you would like this insurance
coverage!
What is Credit Disability Insurance?
Insurance that reduces or takes over the monthly loan payments if you were to become
disabled and are unable to work.
Benefit paid directly to Mutual 1st Federal.
Why should I buy it?
- To relieve yourself of loan payments and financial worry if you become disabled
and can't work.
- To allow you to use benefits from other disability plans for other monthly obligations.
- To allow you to keep the products/services for which the loan was intended.
- To protect your credit rating should you become disabled and have a loss of regular
income.
What about premiums?
Our low premiums are conveniently added to your monthly loan payment.
Premiums do not increase with age.
What is considered a disability?
Generally, if you are unable to engage in any occupation that you are suited for
by age, training or experience, due to injury or sickness, you are considered disabled.
The exact definition of disabled will be provided on your insurance certificate.
If, after recovery from total disability, you become disabled again within three
months, you will receive immediate coverage without any waiting period.
Let us know when placing your loan application if you would like this insurance
coverage!
Guaranteed Auto Protection (GAP) offers protection against financial liability for
individuals who finance a new or used vehicle. GAP protects against financial loss
in the event that your vehicle is damaged beyond repair (totaled) or stolen and
never recovered. With GAP the covered deficiency balance is then waived. In today's
automobile market, during the first few years that you own your vehicle, your loan/lease
balance can be higher than the actual value of your car as a result of depreciation.
If your car were stolen, or totaled in an accident, you would be liable to pay the
difference between your insurance settlement and your outstanding loan/lease balance
owed to the credit union; AND it will provide $1000 toward the purchase of your
next auto provided the financing is done through Mutual 1st Federal.
Example: Based on the sale price of a new $18,000 auto financed at 100%, after one
year the value of your auto would be $10,000 and the amount still owed on the loan
would be $15,000. That leaves a gap of $5,000 that you would be responsible for
repaying in the event your car is totaled or stolen and not recovered.
In today's automobile market, during the first few years that you own your vehicle,
your loan/lease balance can be higher than the actual value of your car as a result
of depreciation. If your car were stolen, or totaled in an accident, you would be
liable to pay the difference between your insurance settlement and your outstanding
loan/lease balance owed to the credit union.
GAP covers the difference between the market value of your vehicle and the loan/lease
balance, less delinquent payments, late charges, refundable service warranty contracts
and other insurance related charges. In the event a deficiency exists, our program
will cover your insurance deductible up to $1000.
When applying for an auto loan this coverage will be offered and the protection
remains in force for the duration of that loan. If at any time the loan is refinanced
GAP would need to be purchased again. The one-time premium is currently $269 (subject
to change at any time) which is divided and built into your monthly loan payment.
For less than $8 per month (based on 36 months) you can be assured that you will
be protected from deficiency balances in the event your auto is totaled or stolen
and not recovered!
Any time you purchase a new or used auto from a dealership you will generally have
a discussion with a finance manager about purchasing a Vehicle Service Agreement
(VSA) which would take care of any expenses associated with repairs that are not
covered by the manufacturer's warranty. Mutual 1st Federal can offer you the same
coverage at a much reduced rate!
We offer coverage on three different levels and all three levels offer these benefits:
- $0 Deductibles
- Towing $50
- Car Rental (up to 10 days/$300)
- Nationwide Protection
- Convenient access to services via a toll-free number
- Travel expenses up to $225
- Increase vehicle resale value (the policy travels with the auto)
- Protection up to 100,000 miles (new cars only)
Why purchase extended coverage? Most major repairs occur after the manufacturer's
warranty expires. Pre-owned car buyers look more favorably upon a vehicle that comes
with coverage. It represents a vehicle that has likely been well maintained by its
owner. Plus, the cost of the insurance can be built into your monthly payment for
just a few dollars more each month and the remaining coverage can be purchased when
you sell the auto or you may apply for a pro-rata refund. Additionally, you have
a 60 day money back guarantee in the event you decide against the coverage.
Let your member service representative know which level of coverage you want when
you apply for your financing for that new or used auto!
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