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Credit Life Insurance

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MSUFCU Account

on 16 December 2015

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Transcript of Credit Life Insurance

Credit Life Insurance

Credit Life Insurance
Mutually beneficial to the Credit Union and the member
Minnesota Life
A signed insurance agreement is required
Adding and Removing Insurance
What does it do?
In the event the member passes away, the loan balance up to $50,000 is paid off by the insurance
Who is eligible?
Any member under the age of 71
Contact Specialty and Support Services if a member or their family needs to file a claim with Minnesota Life
Can be purchased for the primary, joint, or both borrowers
Six-month pre-existing illness clause
But what does it cost?
Premiums depend on the loan balance and how many borrowers are covered
Single: $0.73 per $1,000
Joint: $1.15 per $1,000
Example: The premium for single life insurance would be $5.84 for a loan balance of $8,000
As of year-end 2015, the Credit Union has 384 loans that have been charged-off of due to the member passing away.

This equals more than $2.3 million in loan balances!
Place warning code 78-Credit Life/Disability on the loan if you need to follow-up for the agreement
Credit Insurance options are shown on the Projections screen in ELA
Credit Life Insurance can be added to an existing loan at any time with an Extension Agreement
Insurance can be removed from a loan at any time with a written request that is imaged
Conversation Tips
Intentional Phrasing
Loan Protection vs. Insurance
Passed away vs. died
Quoting the higher payment first
"I don't need credit insurance because I already have life insurance."
"Why would I care about my loan, I won't be here."
Not available for mortgages or business loans (including business Visas and commercial vehicles)
With credit life insurance, more money from the member's personal life insurance can go to their loved ones.
If a member with an auto loan passes away, their family will lose an income and a vehicle that could help their family. If they have credit life insurance, their family could keep the vehicle after the insurance pays off the loan.
Fully protected loan
Full transcript