Loan Protection Services

Debt Protection

Take a minute and think about the people in your life that are closest to you. What if something were to happen to you OR you became disabled through a sudden illness or accident? These are not pleasant things to think about, but we all know that it can happen. America’s Christian Credit Union offers you the opportunity to protect yourself and your family through debt protection.

What is Debt Protection?

It’s an agreement between you and your credit union where the borrower pays a fee to the lender to cancel or postpone the principal and interest (or interest only) portion of your loan payment, up to the agreement maximum, if you become involuntarily unemployed or disabled due to sickness or injury. It can also repay your loan, up to the agreement maximum, in the event of loss of life.

I see debt can either be cancelled or postponed. What’s the difference?

Balance Cancellation pays off a debt, up to the agreement maximum, if you die. Payment Cancellation cancels the principal and interest portions of your loan payment, up to the agreement maximum, if you become disabled or fall victim to some other protected event such as involuntary unemployment. The amount is cancelled from your loan balance the same as if the payment had been made. Interest Cancellation defers the principal portion of the payment and cancels the interest portion, up to the agreement limit. With deferral, the loan balance does not decline. Program fees may or may not be waived under Interest cancellation. Payment Postponement (sometimes referred to as Skip Payment) defers the entire payment, along with any program fees, but interest continues to accumulate and the outstanding balance increases.

Why Should I Consider Debt Protection?
  • Helps protect you and your family against financial hardship should the unexpected occur.
  • Helps protect your good credit rating and loan collateral.
  • Reduces the financial burden on your family should you die, become disabled, or lose your job.

Eligibility requirements, interest rates and repayment terms vary depending upon the type of loan you request.