Greylock Federal - Loan Payment Protection

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Loan Payment Protection

Understanding Credit Insurance

There are plenty of misunderstandings about insurance in general, and credit insurance in particular. Another name for credit insurance is Payment Protection Insurance.

What is Payment Protection?

We offer access to two types of Payment Protection insurance: credit life and credit disability insurance.

Credit life insurance is designed to payoff the insured balance on your loan if you die.

Credit disability insurance is designed to pay your loan payments (up to the contract limit) if you become ill or disabled and are unable to work.

Is Payment Protection available on all loans?

Payment Protection is optional and is available on installment loans at Greylock. You may also be able to apply for joint credit life to help protect both you and your co-borrower if you are both named on the loan application.

What are the benefits of Payment Protection?

Protects your family's financial security. Payment Protection protects your credit rating by ensuring your loan will not end up in default in the event of your disability or death. This reduces the financial burden on your family.

Affordable. Payment Protection rates are established by each state and generally result in reasonable, monthly premiums. Rates vary from state to state and actual cost of your particular coverage depends on where you live, your loan amount and the coverage selected.

Convenient. Application is easy and usually done at time of loan application. And, your monthly premium is included with your monthly loan payment.

Simplified eligibility. You can obtain Payment Protection at Greylock up to the age of 70 for credit life and the age of 66 for credit disability. Also, a medical exam is usually not required, although, general health questions may be asked.

I already have life insurance and disability insurance through my work. Why should I purchase this insurance?

Payment Protection may be an effective way to supplement the other life or disability insurance you carry. Disability coverage through work is often not enough. Employee benefit specialists say that most long-term benefit plans only cover 60 percent of take-home pay for up to six months. (Check with your employer to determine if you have any current long-term disability benefits.)

Likewise, while Social Security provides long-term disability benefits, these benefits don't begin for six months and are capped at a portion of normal take-home pay. More than 25 percent of initial requests for Social Security disability are denied.* (*Over of entitlement Programs, 2000 Green Book, Ways and Means Committee, Washinton, D.C.) That's why bills could begin to pile up as you try to regain your health and earning capacity after a disability.

Not everyone needs Payment Protection and only you can answer the question on whether you think you have enough insurance coverage to protect your family.

How do I get Payment Protection coverage?

During the loan application process, you'll be given the opportunity to apply for Payment Protection. If you apply for coverage at the time of your loan application, it's likely that you won't have to go through a long approval process or take a medical exam. And, your insurance becomes effective as soon as your loan is finalized.

If you do not sign up for this insurance at the time of loan application, you can do so at any time after your loan closing. However, once your loan has been in place for 30 days, you'll have to provide evidence of good health in order to receive coverage.

If you have additional questions about Payment Protection, please give us a call at (413) 236-4000 or click here to send us an email.

Personal or confidential information should not be sent via email as this information is not transmitted through a secure link.

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