Life Insurance In The Mcu: What's The Deal?

Municipal Credit Union (MCU) offers a range of insurance products to its members, including life insurance. The credit union has partnered with insurance companies like TruStage and The Family Security Plan to provide members with access to top-of-the-line insurance services. In this article, we will explore the life insurance options available through MCU, including whole life insurance and accidental death and dismemberment (AD&D) insurance, and discuss the benefits and features of these policies. We will also touch on other insurance products offered by MCU and how they can help protect the financial well-being of its members and their families.

Whole Life Insurance

Municipal Credit Union (MCU) offers Whole Life Insurance through its partners at The Family Security Plan® and PFP. This provides permanent coverage for the life of the insured, with a savings component to help meet your financial needs.

The cost of whole life insurance depends on several factors, including the age and health of the insured, the coverage amount, and the rate of cash value growth. Younger and healthier individuals generally pay lower premiums. Additionally, whole life insurance policies can be customized with riders (add-ons) to meet specific needs, such as a disability waiver of premium or an accidental death benefit.

The Family Security Plan® insurance options through MCU provide flexible benefits and affordable rates for whole life insurance. You can choose the death benefit amount and premium amount that fits your budget and peace of mind. The policy remains yours as long as you continue paying the premiums, even if your employment or health status changes. The coverage can also be kept at the same cost if you change jobs or retire.

In summary, whole life insurance offers permanent coverage, fixed premiums, and a savings component that grows tax-free over time. It is a versatile option that can provide financial stability and peace of mind for you and your loved ones.

Accidental Death & Dismemberment (AD&D) Insurance

Municipal Credit Union (MCU) offers Accidental Death & Dismemberment (AD&D) Insurance as a supplement to life insurance. This insurance pays a cash benefit for loss of life, limb, digits, vision, speech, or hearing as a result of an accident.

AD&D insurance is usually added as a rider to a life insurance policy. It is important to note that this insurance has significant coverage limitations and is not a substitute for a full life insurance policy. MCU's AD&D insurance is provided through its partners TruStage® and PFP.

The benefits of AD&D insurance include financial assistance for surviving loved ones, supplementing lost income, lower premiums, and no requirement for a medical exam. However, there are also disadvantages to this type of insurance. AD&D insurance only pays for certain incidents, and if death occurs outside of these limitations, no benefit is paid. Additionally, there is a low likelihood of payout, as accidents are the third-leading cause of death in the United States. Group coverage may also be lost when changing jobs.

Overall, AD&D insurance can be a cost-effective way to supplement insurance and provide additional financial assistance to families in the event of an accidental death or dismemberment.

TruStage Auto & Homeowners Insurance Program

The TruStage Auto & Homeowners Insurance Program is a property and casualty coverage solution for credit union members. It is made available by CUNA Mutual Insurance Agency, Inc. and underwritten by leading insurance companies.

The program offers customizable coverage options, reliable support, and cost savings. You can access convenient e-services, pay your bill, make changes to your policy, and even report a claim. In addition, you can obtain a free, no-obligation quote and fast, easy access to claims services 24 hours a day.

The program works with leading insurance carriers to bring competitive auto and home insurance savings to credit union members. It provides comprehensive auto and home coverage, with various add-on options available. For example, TruStage auto insurance customers may have the option to purchase add-ons such as roadside assistance or Liberty Mutual’s Better Car Replacement.

The TruStage Auto & Homeowners Insurance Program is not available to everyone, and discounts and coverage options may vary by state.

Credit Life and Disability Insurance

Credit life insurance is a type of insurance that pays off a debt to a lender upon the policyholder's death. Credit disability insurance, also known as accident and health insurance, covers loan payments if the policyholder becomes disabled and unable to work. Credit involuntary unemployment insurance covers loan payments if the policyholder is laid off from their job. Credit property insurance covers property used to secure a loan, such as a car or boat, if it is damaged or destroyed during the loan period.

While credit life and disability insurance can provide peace of mind and protection for borrowers and their loved ones, they are generally more expensive than term life insurance policies offering the same coverage amount. Additionally, credit life and disability insurance policies do not allow beneficiaries. Thus, it is usually recommended to opt for term life insurance instead, as it is more cost-effective, offers flexibility in choosing a death benefit, and allows the beneficiary to use the payout as they see fit.

Guaranteed Asset Protection Insurance (GAP)

Guaranteed Asset Protection Insurance, or GAP, is an optional insurance coverage that can be purchased as a supplement to an auto, motorcycle, boat, ATV, or RV loan. This type of insurance helps protect your loan from negative equity, which occurs when you owe more on your loan than what the vehicle is worth.

GAP coverage is designed to protect your investment in your vehicle in the worst-case scenario, such as if your vehicle is deemed a total loss by insurance or stolen. In these cases, GAP covers the difference between what you owe on your loan and what your insurance company pays out. This can result in a significant financial benefit to the policyholder, as standard auto insurance typically only covers the amount up to the vehicle's value.

For example, if you have a loan balance of $15,000 and your insurance company provides a settlement of $10,000, you would typically owe a remaining balance of $5,000. With GAP insurance, however, this remaining balance would be covered, and you would owe nothing.

GAP insurance can be purchased in several ways, including through a dealership, your auto insurance company, or a bank, credit union, or finance company. It is important to note that GAP insurance is optional and can be declined if offered by a dealer when purchasing or leasing a car. Additionally, GAP insurance is fully refundable within the first 60 days, with refunds after this period dependent on the terms of your contract or policy.

Frequently asked questions