What Can DCU Save You?

Payment Protection

Ease your loan payments, protect your family, and safeguard your credit rating




  • Benefits
  • Details
  • FAQ
  • Reviews
payment protection

Payment Protection Benefits

  • Insurance that goes with your DCU loan
  • Protects you during times of financial stress
  • Temporarily cancels your loan payment without penalty

How Payment Protection works

Payment Protection offered by DCU helps relieve the financial stress and worry related to making loan payments when your life takes an unexpected turn.

Your loan payment* will be canceled for a period of time without penalty, added interest, or being reported as delinquent to the credit bureau when one of the following covered events occur:

  • Death – gives your family time to get back on its feet financially.
  • Disability** – helps you avoid bills piling up as you try to regain your health and earning capacity. Use as a supplement to any disability coverage you may have at work (which usually covers only 60 percent of pay).
  • Involuntary Unemployment** – gives you assurance during a difficult time that one of your major monthly expenses will be taken care of as you search for new employment.
  • Family Medical Leave – helps your family with a major expense during what is often an unusually hectic time – a leave from your job for family or medical reasons.
  • Hospital Stay – provides peace-of-mind and one less worry while you're in the hospital.

How To Get Payment Protection

Please consult with one of our loan representatives to discuss the Payment Protection Program in more detail. Or, call us at 508.263.6700 or 800.328.8797.

* DCU Payment Protection is available for closed-end consumer loans (if the loan has a term of 120 months or less) and credit cards.

** For Disability and Unemployment benefits, covered borrower must be gainfully employed outside his/her residence for at least 30 hours per week.

Frequently Asked Questions About Payment Protection

  1. Can I add Payment Protection at any time?
    No. Payment Protection must be added to the loan during the first 30 days of opening the loan.
  2. Can I cancel Payment Protection at any time?
    Yes. You must submit a written request to DCU.
  3. If I cancel Payment Protection, will my payment be adjusted?
    No. Your monthly loan payment will remain the same. The cost of the coverage will be applied to principle, which will result in paying off your loan sooner.
  4. If I have Payment Protection on a Visa and file a claim for Disability, Involuntary Unemployment, Hospital Stay, or Family Leave can I continue to charge on my Visa?
    Yes. However, the claim will only cover the minimum payment on the loan balance at the time of your claim.
  5. I only want Death, Involuntary Unemployment, and Hospital Stay coverage. Can I customize a plan?
    No. DCU has put three protection plans together based on member and staff feedback. We think the plans, particularly the Preferred Protection Plan, are the best value for you.
  6. Can I get Payment Protection on loans with terms greater than 120 months and/or loan amounts greater than $50,000?
    Yes. However, only the first 120 months and/or $50,000 will be protected.
  7. What happens to my protection if I become delinquent on a covered loan?
    If the loan becomes 90 days delinquent, the Payment Protection will be canceled.
  8. Will my insurance coverage go away when Payment Protection becomes available?
    I have Payment Protection (credit life and disability coverage) today. No. DCU will continue to support Payment Protection and handle the claims process.
  9. If I have CPI (forced placed insurance) can I still file a claim?
    Yes. CPI is included in your monthly loan payment. As a result, the loan will be paid based on the Payment Protection plan selected.

If you have any other questions regarding Payment Protection and services offered by DCU, please call our Information Center at 508.263.6700 or 800.328.8797.



[an error occurred while processing this directive]


(2 Questions : 2 Answers)

Product Q&A

Ask your questions. Share your answers.

 
 
« Back
 
 
 
1 answer

What does it cost?

On a $25000 auto loan
State: Massachusetts
Age: 55-65
DCU Member for: 5 to 10 years
3 years, 8 months ago
Member avatar
by
Cherry Vanilla
Franklin
+4points
4out of 4found this question helpful.
Was this helpful?helpful4unhelpful0

Answers

Answer: 
There are a couple different options and prices for our payment protection plan.

The first option would be our Premium Protection plan that cost $1.93 per $1,000. Your loan payment* will be cancelled for a period of time without penalty, added interest, or being reported as delinquent to the credit bureau when one of the following covered events occur:

• Death – gives your family time to get back on its feet financially.
• Disability** – helps you avoid bills piling up as you try to regain your health and earning capacity.
Use as a supplement to any disability coverage you may have at work (which usually covers only 60 percent of pay).
• Involuntary Unemployment** – gives you assurance during a difficult time that one of your major monthly expenses will be taken care of as you search for new employment.
• Family Medical Leave – helps your family with a major expense during what is often an unusually hectic time – a leave from your job for family or medical reasons.
•Hospital Stay – provides peace-of-mind and one less worry while you're in the hospital.

The second option would be our Preferred Protection that cost $1.62 per $1,000. Your loan payment* will be cancelled for a period of time without penalty, added interest, or being reported as delinquent to the credit bureau when one of the following covered events occur:

• Death – gives your family time to get back on its feet financially.
• Disability** – helps you avoid bills piling up as you try to regain your health and earning capacity. Use as a supplement to any disability coverage you may have at work (which usually covers only 60 percent of pay).
• Involuntary Unemployment** – gives you assurance during a difficult time that one of your major monthly expenses will be taken care of as you search for new employment.
• Family Medical Leave – helps your family with a major expense during what is often an unusually hectic time – a leave from your job for family or medical reasons.

The third option would be our Basic Protection that cost $.96 per $1,000. Your loan payment* will be cancelled for a period of time without penalty, added interest, or being reported as delinquent to the credit bureau when one of the following covered events occur:

• Death – gives your family time to get back on its feet financially.
• Disability** – helps you avoid bills piling up as you try to regain your health and earning capacity. Use as a supplement to any disability coverage you may have at work (which usually covers only 60 percent of pay).

*Digital Federal Credit Union Payment Protection is available for closed-end consumer loans if the loan has a term of 120 months or less and credit cards.

**For Disability and Unemployment benefits, covered borrower must be gainfully employed outside his/her residence for at least 30 hours per week.
State: Massachusetts
3 years, 7 months ago
Member avatar
by
DCU Staff
Marlborough
+1point
1out of 1found this answer helpful.
Was this helpful?helpful1unhelpful0
I am considering Payment Protection on my auto loan and researching claims coverage, and I'm wondering what insurance company backs your product so I can do some checking?
State: Massachusetts
1 year, 3 months ago
Member avatar
by
Mike
Quincy
0points
0out of 0found this question helpful.
Was this helpful?helpful0unhelpful0

Answers

Answer: 
The Plan Administrator for Payment Protection coverage is currently Minnesota Life Insurance Company.
State: Massachusetts
1 year, 3 months ago
Member avatar
by
DCU Staff
Marlborough
0points
0out of 0found this answer helpful.
Was this helpful?helpful0unhelpful0
  • 2015-04-24T07:33:59.907-05:00
  • bvseo_lps, prod_bvqa, vn_prr_5.6
  • cp-1, bvpage1
  • co_hasquestionsanswers
  • loc_en_US, sid_6-2, prod, sort_default
1 of 1
  • 2015-04-24T07:33:59.909-05:00
  • bvseo_lps, prod_bvqa, vn_prr_5.6
  • cp-1, bvpage1
  • co_hasquestionsanswers
  • loc_en_US, sid_6-2, prod, sort_default
1 of 1

Digital Federal Credit Union

220 Donald Lynch Boulevard

PO Box 9130

Marlborough, MA 01752-9130

508.263.6700  |  800.328.8797

ABA Routing Number: 211391825

    

Federally Insured by NCUA

Equal Housing Opportunity

© 2015 Digital Federal Credit Union