When Anita’s husband passed away in November, it drastically changed her financial situation. No longer able to afford her vehicle payments, she came into an OCCU branch to discuss what her options might be.
After investigating the situation, we discovered her loan included Payment Protection. Not only were we able to cancel her remaining loan balance, but we also reimbursed her last year of payments—the overall claim totaling more than $4,000.
Anita cried when we told her the news, saying how it’s “such a relief to have such an amazing credit union.”
While you can’t protect yourself from every curve ball life throws your way, we can help you make sure your OCCU loan is protected. We offer Payment Protection as an option on qualifying loans, and many of our members have shared with us that they’re glad they chose it.
What does Payment Protection do?
When OCCU members Jay and Mary financed their new truck and motorcycle, they added Payment Protection to both loans. Less than seven months later, Mary passed away unexpectedly. The extra protection saved Jay from the burden of having to pay off the vehicles by himself.
Instead, the balance on both loans was cancelled, relieving him of more than $32,000 in payment.
Payment Protection could safeguard you in case the loss of a loved one impacts your ability to make your loan payments. When you’re grieving, the last thing you want to worry about is how you’re going to pay the bills. With the right protection, you could have your entire loan balance cancelled so you can move forward with a clean slate.
And that’s just one of the ways Payment Protection might help our members recover from unexpected life events. We also offer different levels of protection that could serve as a safety net in case of:
Involuntary Unemployment. If the recent recession taught us anything, it’s that you never know when forces beyond your control might threaten your job. Job markets change, companies restructure, and businesses fold. If you lose your job due to events outside your control, Payment Protection may cancel your loan payments for up to six months up to $7,500 on the loan, giving you time to regain your financial footing.
Disability. A serious illness or injury can topple your financial stability and leave you struggling to recover, both physically and financially. Between medical bills and the loss of income, a disability could leave your finances devastated. With Payment Protection, you at least won’t have to worry about your loan payments for a while. You might get them cancelled for up to 12 months up to $15,000 on the loan.
Who needs it?
People often assume they don’t need Payment Protection if they’re still young. But OCCU member Michael was only 40 when he decided to add it to his vehicle loan. When his wife notified us of his unexpected passing, she was relieved to learn it would cancel his remaining balance of more than $3,600.
Payment Protection may not be for everyone, but it’s a good idea to talk to your OCCU representative about what it could mean for you. To determine whether it’s a wise decision, we recommend looking at a variety of factors such as:
- The size of your loan
- Your income and savings
- Eligibility requirements
- Cost of the plan
When life gets rocky, it helps to know you have Payment Protection that may prevent you from defaulting on your loan. Find out more about whether Payment Protection may be right for you.