Debt Protection
You’ve heard of protecting physical objects, like a house or car, but did you know it’s also possible to insure financial products, like a personal loan? Thanks to Debt Protection, you can. In the case of unplanned events such as death, disability, or involuntary unemployment, Debt Protection may cancel your personal loan balance or monthly loan payments without penalty or added interest.
Easy
Let us know which level of protection you’d like added—no medical exams or hoops to jump through.
Budget Friendly
The cost of coverage is included in your monthly payment. there’s no need to worry about another bill to pay.
Peace of Mind
Rest easy knowing that your family is protected in case of death, disability, or job loss.
There are three levels to choose from—all optional, but we highly recommend some level of coverage.
| Coverage | Life Plus | Life Plus & Disability | Life Plus, Disability & Involuntary Unemployment |
|---|---|---|---|
| Loss of Life1 | |||
| Disability2 | |||
| Involuntary Unemployment3 | |||
| Cost4 | $1.06 per $1,000 borrowed | $2.46 per $1,000 borrowed | $3.78 per $1,000 borrowed |
FAQs
Do I have to add Debt Protection to my loan?
No, your purchase of Debt Protection is optional. Whether or not you purchase this product will not affect your application for credit or the terms of any existing credit agreement you have with us.
What is Debt Protection?
Debt Protection is an “umbrella” name for debt cancellation products. When you have Debt Protection on your loan, you can ask Arkansas Federal to cancel all or part of your obligation to repay an extension of credit upon the occurrence of a specified event (up to the max limits). Events include death, disability, and involuntary unemployment.
Can I cancel at any time?
Yes, you may cancel Debt Protection at any time. It is fully refundable if you do so within the first 30 days.
Do I need a medical exam?
No medical exam is required.
How much does Debt Protection cost?
The monthly cost is based on your loan amount. The rate is the same regardless of age. Please see the chart above for the monthly cost per $1,000 borrowed.