Frequently Asked Questions

• What is Credit Life & Disability Insurance?

  Credit Life Insurance is an insurance plan that will pay the balance of your loan if you die while you are insured.

  Credit Disability Insurance is an insurance plan that makes loan payments to the credit union if you become totally disabled by sickness or accident.

  It is available to most borrowing members who obtain advances that will be repaid in  monthly installments. (Note: HFS only does monthly billing for our loans.) Coverage is available for both conventional and open-end loans.

• What does Credit Life & Disability Insurance do?

  Credit Life & Disability Insurance helps members make their monthly payments towards their loans during their time of disability or pay off loans in the occurrence of death. If a member is totally disabled for more than 14 days, then the disability benefit begins with the 15th day of disability. It provides financial security for your family and helps protect them from adverse financial hardships at a time when help may be needed most.

• Who is eligible for Credit Life & Disability Insurance?

  To qualify for Credit Life Insurance, you must not have reached the maximum eligible age stated in the Credit Union’s policy on the date of your loan or date of death.  Only one death benefit is payable for any one loan.

  To qualify for Credit Disability Insurance, you must be actively at work and regularly performing all the usual duties of a full-time gainful occupation.   You also must not have reached the maximum eligible age stated in the credit union’s policy on the date of your loan.  Only one member is insured for any one loan.

• How is the cost handled?

  Current rates can be quoted when you take out a loan. The premium is either added to the loan payment, added to the loan balance or deducted from your Savings Account, depending on the type of loan.

• What coverage is provided?

  Exclusions for death benefits :

  1. a claim won’t be paid if you die within 6 months after the effective date of insurance and the death results directly or indirectly from, or is contributed to by a disease or bodily injury for which you received medical advice, diagnosis or treatment at any time during the 6 months immediately preceding the effective date of insurance
  2. a claim won’t be paid if you commit suicide within 12 months after the effective date of insurance

  Benefits are payable for all disabilities except those:

  1. beginning within the 6 month period prior to the effective date of insurance or beginning within 6 months after the effective date of insurance and results from any disease or bodily injury for which you received medical advice, diagnosis or treatment
  2. resulting from a normal pregnancy

  During the first 12 consecutive months of disability, Credit Disability Insurance makes loan payments while you are unable to perform the duties of your occupation due to a medically determined sickness or bodily injury. You also must be under the care and treatment of a physician during this period.

  After the first 12 consecutive months of disability, Credit Disability payments continue as long as you are unable to perform the duties of any occupation for which you are reasonably qualified by education, training or experience.

  In either case, you will be informed when claim payments are being made and what further action you should take.

• When does protection terminate?

  Your protection terminates on the scheduled maturity date of the loan, the date the loan is repaid or refinanced, or the date the loan is transferred to another creditor. Protection may also end on the day you become more than 90 days delinquent on your obligation to the Credit Union, when the Credit Union terminates the group policy, unless you have paid a single premium, or when you choose to terminate the coverage.

• How do I file a claim for an insured loan?

  You may contact the Credit Union by calling 930-1400.

  Please be sure to provide the following:

  1. Date of disability/death (a claim cannot be filed without the date)

  2. Address and phone number must be current

  3. Preference of contact (mail/email)
• I lost my job (laid off, terminated), can I use my insurance to pay my loan?

  No, Credit Disability Insurance only covers your loan if your inability to work is caused by illness or injury.

• When do I file or submit a claim for my insured loan?

  You are welcome to contact the Credit Union at any time, just keep in mind that any benefits will not be paid until after the 14th day of disability. You do not need to wait the 14 days, the earlier you notify the Credit Union the better. Claims may take up to a few weeks to process. During this processing time, members are still responsible for making their loan payments.