Protect Your Loan — Protect Your Peace of Mind

Life doesn’t always go as planned. When the unexpected happens, Debt Protection helps give you one less thing to worry about.

What is Debt Protection?

Debt Protection is optional coverage you can add to a loan through HUDFCU. If you face certain life-changing events such as death, disability, or involuntary unemployment, this facility may cancel your loan balance or monthly payments, up to the maximums defined in your agreement. It’s a way to build extra security for you and your family, so that if life interrupts your income, your loan doesn’t become a burden.

Why consider it?

Debt Protection offers peace of mind by helping you safeguard your loan and your loved ones from financial stress if the unexpected happens. If you were to pass away, become disabled, or lose your job, this protection helps ease the financial burden by covering payments or reducing your loan balance. It’s a simple way to ensure that the loan you’ve worked hard for doesn’t become a source of worry during difficult times.

Key Features

• Covers your loan balance or monthly payments without penalty or added interest, in qualifying situations.
• Eligible events typically include:
  • Death of the borrower
  • Total and permanent disability
  • Involuntary unemployment
• Applies to the loan(s) you choose to protect (car loan, personal loan, etc.).
• Transparent terms — HUDFCU will provide full details of the contract, including conditions and exclusions.

How it works

You can choose to add Debt Protection when you apply for your loan or, in some cases, after the loan has been disbursed. Once enrolled, HUDFCU will provide documentation outlining the specific terms of your coverage, including which events are covered, time limits, and costs.

If a covered event occurs, you or your beneficiary will notify HUDFCU, and once the claim is approved, the benefit will be applied to cancel your loan payments or reduce your balance. It’s important to continue making your regular loan payments until your claim is approved, as the plan doesn’t remove your payment responsibility unless the claim is accepted.

Is it right for you?

Debt Protection isn’t mandatory. It’s an extra layer of protection you choose. You may already have life or disability insurance, emergency savings, or other safeguards.

Ask yourself:

• Could I cover my loan payments if I lost my income unexpectedly?
• Would my family be at risk of having to take over or default on this loan if something happened to me?

If you answered yes, exploring Debt Protection could make sense.

Get Started

To get started, speak with our lending team to learn more about the cost, coverage options, and eligibility for Debt Protection. When you apply for your loan, simply indicate that you’d like to add Debt Protection, or ask if it can be added after disbursement.

Be sure to review your contract carefully so you understand what is and isn’t covered, along with any limits or exclusions. With the right protection in place, you can focus on your goals knowing your loan is safeguarded and your peace of mind is protected.

Important Disclosures

Debt Protection is optional, and your choice to enroll will not affect your loan application or terms with HUDFCU. Coverage is subject to eligibility requirements, terms, conditions, and exclusions; benefits are not guaranteed unless you meet the contract’s requirements. You are strongly encouraged to read the full plan agreement carefully before enrolling.

Ready to protect your loan and your future?
Contact us today at (202) 863-2800 to discuss your options.