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Knowledge Base Article

Payment Protection FAQs

Does Delta Community offer payment protection?

Yes, the Payment Protection service provides a financial safety net for you and your family by reducing or cancelling qualifying loan payments/balances in the event of loss of life, if you become disabled or in the case of involuntary unemployment before the loan is repaid. Payment Protection will need to be purchased at the time of funding for each loan that you want protection for. Ex: You can have protection for your car loan but not your personal loan. To request payment protection for your loans, contact us online via the secure Message Center.

What are the limitations and restrictions for Payment Protection?

Disability

  • Covers protected loan payments up to 24 months with a maximum of $24,000.
  • Event must continue for at least 14 days for benefit to be retroactive back to day one.
  • If disability results from accident or pre-existing illness, there is a 6 month waiting period from date of protection.
  • Reoccurring disability within one year after returning to work is treated as same disability.
  • Member must be working 25+ hours per week on the effective date of coverage.
  • Member cannot earn wages equal to or exceeding 80% of working wages during disability.
  • Member must be under the care of a physician.
  • Benefit applies at any age.
  • Benefit is automatically cancelled if loan reaches 90 days past due.
  • Waiting periods and other exclusions may apply. See or ask for contract terms for details.

Life

  • Maximum of $50,000 per loan.
  • On or after the member's 70th birthday protection will only cancel up to 25% of the protected loan balance or $12,500, whichever is less.
  • Benefit is automatically cancelled if loan reaches 90 days past due.
  • Waiting periods and other exclusions may apply. See or ask for contract terms for details.

Involuntary Unemployment

  • Covers protected loan payments for up to 6 months with a $3,000 maximum.
  • Event must continue for at least 14 days for benefit to be retroactive back to day one.
  • There is a 3 month waiting period from date of initial protection.
  • Must qualify for and be receiving state unemployment benefits.
  • Reoccurring unemployment within one year of returning to work is treated same as initial unemployment.
  • Member must be working 25+ hours per week on the effective date of coverage.
  • Benefit applies at any age.
  • Waiting periods and other exclusions may apply. See or ask for contract terms for details.

What are the rates for the Payment Protection options?

The rates are as follows:

  • Option 1: Includes life, disability and involuntary unemployment
    • Single Coverage: $3.75 per $1,000
    • Joint Coverage: $6.75 per $1,000
  • Option 2: Includes life and disability
    • Single Coverage: $2.50 per $1,000
    • Joint Coverage: $4.50 per $1,000
  • Option 3: Life only
    • Single Coverage: $0.75 per $1,000
    • Joint Coverage: $1.25 per $1,000
  • Credit Cards: $5.50 per $1,000
    • Includes life, disability and involuntary unemployment.
    • Automatically protects the first two borrowers.
    • The fee is based on the balance at the end of each month.
    • The fee is charge at the end of each month.

When does Payment Protection expire?

Payment Protection expires on:

  • The date of death
  • On the date the loan is transferred to another creditor
  • On the date the loan is paid off
  • On the last day of the month notification is received to terminate protection
  • The last day of the month in which the loan is 3 months past due

What number should I call if I have questions about Payment Protection on my loan?

For questions about Payment Protection, including claims assistance, you would call CUNA Mutual Group at 1-800-621-6323 or visit www.cunamutual.com. A CUNA representative will speak with you for specifics on your agreement.

How do I cancel Payment Protection on my loan?

You may request a form be mailed or faxed to you online using the secure Message Center or by phone. Once you receive the form, please sign and fax the form to 404-677-4955.