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Debt Protection

Protect your financial security.

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 your credit card? Thanks to Debt Protection, you can. In the case of unplanned events such as death, disability, or involuntary unemployment, Debt Protection may cancel your credit card balance or monthly payments without penalty or added interest.

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Easy

Just let your loan officer know which level of protection you’d like added. 

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Budget Friendly

The cost of coverage is included in your monthly payment.

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.

CoverageLife Plus Life Plus & Disability Life Plus, Disability & Involuntary Unemployment 
Loss of Life1 
Disability2 
Involuntary Unemployment3 
Cost4  $1.18 per $1,000 borrowed $2.34 per $1,000 borrowed $3.54 per $1,000 borrowed 

FAQs

Do I have to add Debt Protection to my credit card?

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 credit card, 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 credit amount used. The rate is the same regardless of age. Please see the chart above for the monthly cost per $1,000 borrowed.

Get Started Now. It's Easy!

We make it easy to get started. Have questions and want to talk? We're here for you.
Call us at 800.456.3000 or visit your local branch.

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Arkansas Federal Credit Union
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  1. Loss of Life: Cancellation of the remaining balance up to the maximum amount. Before age 70, we will cancel 100% of your protected balance up to $100,000. After age 70, we will cancel 25% of your protected balance as of the date of death, up to $25,000. Refer to the agreement for a full explanation of terms and conditions.
  2. Disability: Up to 6 months or $6,000 (whichever comes first) of payment protection should you experience disability due to injury or illness. To qualify, you must be actively working for 25 hours or more a week. Cannot earn wages equal to or exceeding 80% of previous wages. A reoccurring disability within 1 year after returning to work is treated as the same disability. Refer to the agreement for a full explanation of terms and conditions.
  3. Involuntary Unemployment: Protected payments up to 3 months or $1,500 (whichever comes first). Must be actively working for 25 hours or more per week. Must qualify for and be receiving state unemployment benefits. Self-employment does not qualify. A reoccurring unemployment within 1 year after returning to work is treated as same unemployment.
  4. Cost of coverage will be added to your monthly loan payment. The cost outlined in the chart above is calculated in monthly costs per $1,000 borrowed. Refer to the agreement for a full explanation of terms and conditions.

Federally Insured by NCUA

NMLS# 418494