Life is unpredictable but your finances don’t have to be. In the case of unplanned events such as death, disability or involuntary unemployment, our debt protection program may cancel your loan balance or monthly loan payments without penalty or added interest.
| Loss of Life | Disability | Involuntary Unemployment | Rate per $1,000 of Monthly Loan Balance (Single) | |
|---|---|---|---|---|
| Plan 1 | Yes | Yes | Yes | $2.10 |
| Plan 2 | Yes | Yes | No | $1.20 |
| Plan 3 | Yes | No | No | $0.88 |
PenFed Debt Protection is available for most closed-end consumer installment loans if the loan has a term of 120 months or less, most consumer lines of credit, and credit cards.
Loss of Life
Give your family time to get back on their feet financially.
All Plans: Cancels the remaining loan balance as of date of death (up to $70,000).
Disability
(Available Plans 1 and 2)
We want to help you focus on your health, rather than bills. Our debt protection will supplement any disability coverage program you are enrolled in through your employer.
Plans 1 and 2: Cancels up to 12 payments per occurrence (aggregate maximum of $24,000, up to $1,000 per month).
Involuntary Unemployment
Ensure your loan payment will be taken care of as you search for new employment.
- Plan 1: Cancels up to 6 payments per occurrence (aggregate maximum $15,000, up to $1,000 per month).
Designed with you in mind
More than ever, we all worry about things that might happen tomorrow. PenFed Debt Protection provides an important sense of financial security - knowing your loan will not become a burden to you in times of hardship.
Cancel at any time
You may cancel PenFed Debt Protection at any time. If you do so within the first 30 days, we will refund any fees already paid.
Want to learn more?
Talk to a representative today by calling 800-247-5626 to learn the details about our optional Penfed Debt Protection plan.
Click Here to View a Sample Loan Addendum
Additional Information
You can add this benefit during your loan application process. For more information or to see if your loan is eligible for optional Credit Insurance, call PenFed Representative at 800-247-5626.
This product is optional
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.
Additional disclosures
We will give you additional information before you are required to pay for PenFed Debt Protection. This information will include a copy of the agreement containing the terms and conditions of PenFed Debt Protection.
Eligibility requirements, conditions, and exclusions
There are eligibility requirements, conditions and exclusions that could prevent you from receiving debt protection benefits. You should carefully read your PenFed Debt Protection agreement for a full explanation of the terms and conditions of the PenFed Debt Protection plan.
Debt Protection is not a deposit or obligation of, or guaranteed by PenFed. Debt Protection is not insured or guaranteed by NCUA or any agency of the federal government.
You may obtain coverage to protect your loan from an entity not affiliated with PenFed.
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