At The People’s Federal Credit Union (TPFCU), we understand that life can bring unexpected challenges. Our loan protection options are designed to offer peace of mind, ensuring that your financial commitments are manageable even during unforeseen circumstances. By choosing loan protection, you’re securing a foundation of support for your family and your future.
TPFCU Loan Protection Products
Why should you protect your loan? We hear consistently that our members feel they have more than enough protection, but when you actually have a tragedy you find out that it does not go as far as you expected. In today’s society, people live on credit. They have a house payment, two car payments, vehicle insurance, utilities, food, daycare, and credit cards with no end in sight and these are just the basics. Loan cancellation protection provides payment protection and peace of mind.
Debt cancellation protection premiums are added to your loan balance each month based on your current balance. The premiums for the term of the note have been amortized in your contract, therefore your payment has been adjusted to compensate for the monthly add-on.
Be sure to ask your loan officer for more information about debt cancellation protection.
Credit Life Cancellation Protection
If you are the primary income, can your spouse survive without you? $300,000.00 sounds like it would be enough, but when you have to pay for funeral expenses and outstanding debt, the level of comfort for your loved ones has diminished. Life debt cancellation protection will only add a few dollars to your payment and sometimes just cents, depending on your loan amount. Why wouldn’t you take out life debt cancellation protection?
- Single Life Debt Cancellation Protection only applies to the primary debtor. If you were to die while you are protected, the policy will pay the principal balance of your loan on the date of your death, not to exceed the maximum amount payable under the certificate.
- Joint Life Debt Cancellation applies to the primary debtor and the co-debtor. The co-debtor can only be a spouse who has signed the loan contract and is jointly liable for the debt. If either the primary or co-debtor dies while you are covered, the policy will pay the principal balance of your loan on the date of death, not to exceed the maximum amount of coverage payable under this certificate.
Eligibility Criteria
Must be the primary or co-debtor on the loan.
How to Apply
Contact your loan officer to add this cancellation coverage.
Documentation Required
Valid ID and loan account information.
Credit Disability Cancellation Protection
Disability debt cancellation protection makes your payments while you are out on sick leave. Being out due to an illness or injury means extra expenses with co-pays, out of pocket medical expenses and medications. Having disability cancellation protection will help you meet your monthly obligations. You will not have to worry about making your loan payments; therefore, those funds can be used to help you with your extra monthly expenses. Any funds you draw from your sick leave can be used to maintain your normal daily living. Being off work for a long period of time without disability cancellation protection can cause a hardship that you or your family may not be able to recover from.
- Disability Debt Cancellation Protection only applies to the primary debtor. If you become totally disabled as a result of sickness or injury while covered and continue to be totally disabled for at least the number of consecutive days in the waiting period shown in your certificate, the policy will pay a monthly benefit to the creditor. Your disability benefit will be based on your covered indebtedness on the date the total disability occurs, not to exceed the maximum monthly disability payable under your certificate.
Eligibility Criteria
Must be the primary debtor and meet health requirements.
How to Apply
Consult with your loan officer during loan application or update.
Documentation Required
Proof of income and loan details.
Involuntary Unemployment Debt Cancellation Protection
Involuntary unemployment debt cancellation protection will make your payments should you become involuntarily unemployed as a result of a layoff, general strike, termination by employer, unionized labor dispute, or lockout.
- Single Involuntary Unemployment Cancellation Protection applies to the primary debtor. If the debtor becomes involuntarily unemployed while you are covered, the policy will pay a monthly benefit to the creditor. Not to exceed the maximum monthly benefit payable under your certificate.
- Joint Involuntary Unemployment Cancellation Protection applies to the primary debtor and co-debtor. The co-debtor can only be a spouse who has signed the loan contract and is jointly liable for the debt. If either the primary or co-debtor becomes involuntarily unemployed while you are covered, the policy will pay a monthly benefit to the creditor, not to exceed the maximum monthly benefit payable under your certificate.
Eligibility Criteria
Primary debtor must be employed and meet unemployment criteria.
How to Apply
Request this option through your loan officer.
Documentation Required
Employment verification and loan account details.
Collateral Protection Insurance
Collateral Protection Insurance (CPI) protects the credit union when a member does not carry comprehensive and collision insurance. Texas law requires you to carry liability insurance and the lien holder (credit union) requires you to carry comprehensive and collision insurance.
If we do not receive a policy from your insurance provider, the credit union has a relationship with a third-party carrier that covers the credit union during the time periods you are not covered. The premium is added to your loan account thus increasing your monthly payment. If you were to have damage to your vehicle, CPI would cover the repairs protecting you and the credit union from a loss.
CPI Protection & Liability
To prevent CPI insurance from increasing your payments, contact your insurance company and have them email or fax a copy of your policy. Your liability card will not work as proof of insurance because your policy must show the following:
- Effective Date: The effective date of the policy must be effective the day you purchased your vehicle. If you have changed carriers or lien holders, the policy must pick up from where your previous policy was canceled. There cannot be any lapse in time.
- Year, Make, Model, and Vehicle Identification Number (VIN): Verify your policy information with your contract that you signed with the credit union. If there is one number incorrect on the VIN or the vehicle description is incorrect, this will cause a mismatch and you could be charged CPI.
- Deductibles: Deductibles cannot exceed $500.00 for comprehensive or collision. If your deductibles are higher than $500.00, you could be charged CPI.
- Lien Holder: The lien holder information must be listed and attached to the vehicle for collateral. If you have refinanced your vehicle from another institution, contact your insurance carrier and change the lien holder information to:
The People’s Federal Credit Union
PO Box 9335
Amarillo, TX 79105
Attn: Vehicle Insurance Department
How to Apply for CPI Protection
Once this collateral insurance has been added to your loan account, there is no refund; therefore, it is very important to respond to any insurance letters sent to you. If you receive a letter, one of the items listed above is missing or incorrect. If we are able to get a policy corrected before the credit union is charged for the coverage, we may not have to pass this cost onto you. If this happens, please email department.loan@tpfcu.com or fax 806-242-1137 to correct your policy.
Eligibility Criteria
Must be a TPFCU loan holder.
How to Apply
Automatically added if no insurance is provided; consult your loan officer.
Documentation Required
Proof of other insurance or vehicle documentation.
GAP Protection
Guaranteed Asset Protection (GAP) helps minimize financial loss in the event your vehicle is damaged beyond repair (totaled) or stolen and never recovered. Since a vehicle’s value declines as a result of depreciation, the auto loan balance can be higher than its Actual Cash Value (ACV). Without the guaranteed auto protection of GAP insurance, you will be fully responsible for paying the difference between the insurance settlement and the outstanding loan balance. With coverage, GAP will pay for up to 150% of the vehicle’s NADA value after a $1,000 deductible.
Due to deductibles and the ACV, in most cases you are left with a balance that is required to be paid off immediately in order for the credit union to release your title to the insurance company. This is a financial burden because you are now in a position of needing to purchase another vehicle and having to come up with cash to pay off a vehicle that is no longer drivable.
GAP insurance is added to your loan balance at the beginning of the note and will only change your monthly payment by a few dollars. The peace of mind is worth it. Be sure and ask your loan officer about GAP when considering auto financing for your next vehicle. You can also ask about our GAP Advantage coverage, which offers $2,500 toward your new vehicle loan if you finance with TPFCU.
Eligibility Criteria
Eligible with a vehicle loan through TPFCU.
How to Apply
Add at the loan’s inception or during a refinancing.
Documentation Required
Loan agreement and vehicle valuation details.
Additional Protections
TPFCU offers extra coverage options to further protect you and your family from life’s unexpected events and accidents.
Accidental Death & Dismemberment (AD&D) Insurance
AD&D Insurance provides financial support in case of serious injury or accidental death. This coverage helps ease the financial burden on your loved ones during difficult times, ensuring they’re better prepared for sudden changes.
Eligibility Criteria
Must be a TPFCU member.
How to Apply
Contact or visit TPFCU to acquire this insurance.
Documentation Required
Identification and TPFCU account information.
Mechanical Breakdown Protection
Mechanical Breakdown Protection (MBP) covers major vehicle repair bills after warranties expire. This protection goes beyond standard car insurance and helps you avoid costly out-of-pocket repairs. MBP is similar to MMP (Major Mechanical Protection), but typically offers more comprehensive, general coverage.
Eligibility Criteria
Available for members with vehicle loans.
How to Apply
Request MBP when you apply for a loan or during a loan review.
Documentation Required
Vehicle details and warranty information.
Find the Right Loan Protection with TPFCU Today
Choosing the right financial protection plan with the right lender is an essential step toward financial security. At TPFCU in Amarillo, Texas, we offer a range of options to ensure your financial security, from payment protection to vehicle and loan protection. Contact your loan representative or visit a local branch today to learn more!
Frequently Asked Questions
Loan cancellation protection covers payments during disability, involuntary unemployment, or death, with options to match your needs.
No, it’s optional but provides financial protection during unexpected events.
Yes, you can combine options like debt cancellation with GAP for added security.
Also called Guaranteed Auto Protection, GAP can help cover the difference between your car’s depreciated value and auto loan balance if totaled or stolen. GAP pays up to 150% of the vehicle’s NADA value, and there is a $1,000 deductible.
Contact TPFCU for guidance and gather the necessary documentation for your claim.
