What Is Debt Protection?

Debt Protection acts as a financial safety net, helping protect your loan and your budget when unexpected circumstances impact your ability to make payments. Rather than worrying about how to keep up with loan obligations during a difficult time, Debt Protection may help provide relief when qualifying events occur.

Coverage is completely optional and can be added to eligible loans at the time of application or after loan funding, depending on loan type and program eligibility.

Benefits of Debt Protection

• Payment Relief: May cancel or waive qualifying loan payments during covered life events.
• Convenient Coverage: The cost is included as part of your monthly loan payment.
• Affordable Protection: Designed to provide valuable coverage at a manageable cost.
• Immediate Coverage: Protection begins when coverage becomes effective according to program terms.
• Added Peace of Mind: Helps reduce financial stress during difficult times.

Life Events Covered by Debt Protection

Disability

If a covered illness or injury prevents you from working, Debt Protection may help cancel or waive qualifying loan payments during the covered period.

Involuntary Unemployment

If you experience a qualifying involuntary job loss, Debt Protection may provide payment assistance to help you stay on track financially.

Death of a Borrower

In the event of a borrower's death, Debt Protection may help cancel or waive the remaining balance or qualifying payments, helping ease the financial burden on surviving family members.

Enhanced Protection with Life Plus

For members looking for an additional level of protection, Debt Protection with Life Plus offers expanded coverage for certain qualifying events.

Additional Life Plus benefits may include:

• Accidental Dismemberment
• Terminal Illness
• Hospitalization
• Family Medical Leave
• Death of a Non-Protected Dependent

Why Consider Debt Protection?

Your loan helps you achieve important goals, whether it's purchasing a vehicle, consolidating debt, financing a major expense, or accessing the equity in your home. Debt Protection helps provide confidence that your financial obligations may be protected if life takes an unexpected turn.

While no one hopes to use it, many members appreciate knowing they have an extra layer of financial security in place.

Learn More About Your Options

Debt Protection can be added to many eligible Cabrillo Credit Union loans. Our team can help you understand available coverage options, costs, and benefits so you can decide if Debt Protection is right for you.

Debt Protection is optional and not required to obtain credit. Eligibility, benefits, limitations, exclusions, and terms apply. Coverage may vary by loan type and individual circumstances. Please consult a Cabrillo Credit Union representative for complete details and program disclosures