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Protect your Loan


Loan Protection / GAP Coverage

LOAN PROTECTION INSURANCE is credit insurance that´s directly tied to your loan. Loan Protection is designed to make sure a debt doesn´t become a burden if the borrower passes away or becomes disabled. There are two forms of loan protection insurance:

1. CREDIT LIFE INSURANCE is a group insurance policy designed to pay the outstanding loan balance of a borrowing member in the event of his or her death. The premiums for coverage are paid by the member and are added to the monthly loan payment.

Single or Joint Life coverage may be available. Single coverage insures the primary borrower; joint coverage insures the primary borrower and one other eligible party to the loan.

Guarantors (Cosigners) are not eligible to apply for or be covered by Life Insurance.

Coverage Limits:

  • $50,000 maximum per loan
  • 120 months per loan

2. CREDIT DISABILITY INSURANCE is a group insurance policy designed to help make a member´s monthly loan payment to the credit union if the member is totally and continuously disabled by a sickness or accident. The premiums for coverage are paid by the member and are added to the monthly loan payment. Coverage is offered to eligible members on an optional basis.

Coverage Limits:

  • 120 months per loan
  • $850 per month per loan
  • $50,000 maximum per loan 


In today´s market, a vehicle begins to depreciate the minute it is purchased. Because of this, a vehicle´s outstanding loan balance is typically higher than its actual cash value, especially during the first few years of the loan.

When a vehicle is totaled or stolen, the borrower´s insurance settlement is based on the actual cash value of the vehicle. Because of the way the claim is paid, the settlement can be significantly less than the remaining loan balance. This may create a deficiency balance or a "gap" resulting in a serious financial hardship for the borrower.

Now, our Guaranteed Auto Protection (GAP) program will help protect your new or used vehicle investment, avoid a serious financial loss, and guarantee the loan is paid.

If the vehicle is totaled or stolen, GAP pays the difference between the outstanding loan balance at the time of loss and the actual cash value of the vehicle (primary insurance settlement), less certain deductions. Plus, GAP may also pay up to $1,000 of your insurance deductible.

Eligible Collateral:

  • Automobiles
  • Vans
  • Light Trucks up to a 1-ton towing capacity
  • Motorcycles
  • Snowmobiles
  • Jet Ski´s
  • ATV´s
  • Golf Carts
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