Loan Insurance and Debt Protection

Unfortunately, the unexpected sometimes happens. Can you still make your loan payments if the unthinkable happens to you or your family? Most people can't, and that's why loan insurance and debt protections is so important.  For a few extra dollars a month, it helps make the payments when you can't. Here's a quick guide to debt protection and loan insurance offered through Partners 1st.

Death Debt Protection |Disability Debt Protection | GAP Insurance
 

Death Debt Protection:
Death Debt Protection is designed to cancel the remaining loan balance should the borrower die. The outstanding balance of the loan would be paid off in the event of the member’s death, up to a maximum of $75,000 per loan.

• Member must be age 18 or over

• Maximum loan repayment period is 180 months

• Member must be under age 70 on date loan is disbursed. Coverage ceases when member reaches age 70

• Coverage excludes suicide during the first year of coverage
  

Disability Debt Protection:

Disability Debt Protection is designed to cancel loan payments for as long as the borrower is disabled. The protection helps protect the borrowers credit rating by making sure that the loan would not end up in default if those events occurred.

There are two different plans based on your loan term.

Loans with terms of less than 10 years - coverage will cancel the member’s monthly payment up to $1000 a month while the member is disabled and unable to work.

Loans with terms of more than 10 years - coverage will cancel the member’s monthly payment up to $1500 a month while the member is disabled and unable to work.

• • To receive benefits, member must be off job 30 days or more

  • Only first name borrower is eligible

  • Member must be between ages 18-70 on date loan is disbursed
    
    

Gap Insurance (GAP):

Available only on auto loans

What is GAP?
As you probably already know, as soon as you purchase a vehicle, it begins to depreciate in value. However, what you probably DON'T know is this: if your vehicle is stolen or totaled, the actual cash value of the vehicle can be lower than the balance still due on your loan. This is particularly true during the first few years of your loan or lease.

Should your vehicle be totaled or stolen, the amount paid to you by your insurance company may not be enough to cover the full balance still due on your loan. Hence, a "gap" is left between what the insurance company settlement pays you for your vehicle and what amount will pay off the balance of your loan. Basically, you're left to pay the remaining balance on a vehicle that you no longer own!

So what can you do to protect yourself from this? When you finance your loan through Partners 1st, and elect to purchase GAP Insurance, you'll be spared the possibility of ever having to deal with this nightmare.

What does GAP cover?
GAP covers the difference between the cash value of your vehicle and the loan or lease value, not including delinquent charges, late charges, refundable service warranties, and other insurance-related charges.  

GAP may also even reimburse you up to $1000 of your insurance deductible.*
(*This option is not available in Illinois or Arkansas).

Here's an example of how GAP Insurance can benefit you:
Outstanding loan balance after one year:	$15,000
Cash value of vehicle after one year:	$10,000
Insurance settlement:	$10,000
Amount still due to pay off loan:	$5,000
GAP pays difference	$5,000
You owe:	$0

Without GAP, you'd still owe $5000 to pay off your vehicle loan!

Why choose GAP Insurance?

• GAP Insurance through Partners 1st offers you peace of mind-- you won't have to worry about out-of-pocket expenses for a vehicle that you no longer own.

• You can avoid financial hardship.

• You can more quickly afford a replacement vehicle.

• You can protect your credit rating.

• You may be eligible to get up to $1000 of your deductible reimbursed (not available in Illinois and Arkansas).      

How much does it cost?

GAP Insurance is inexpensive-- just $250. And, even better, you can add GAP Insurance to your loan for up to 18 months after you've gotten the loan!

All of these insurance and debt protection programs include other exclusions and limitations and may not be available on all loans. Ask our staff for complete details, premium costs, and a copy of the actual policy.