Loan Protectin

For your protection, we make available optional Term Life and Disability Insurance for loans through CUNA Mutual Insurance Society. The cost may be less than you would pay for similar insurance elsewhere.

You can choose one or both types of coverage for all loans except first mortgages, credit cards, and equity lines of credit and loans with a term of greater than 10 years.

What is Term Life Insurance for Loans?

Term Life Insurance for Loans generally pays off a loan (up to the insurance contract limit of $30,000) if you die before your BayLands Federal Credit Union loan is repaid.

What is Disability Insurance for Loans?

If you become disabled due to a covered accident or illness, Disability Insurance for Loans generally makes payments (up to the insurance contract limit) on your loan with BayLands Federal Credit Union. You must work a minimum of 25 hours a week to select this coverage.

The premiums are based on the amount of the loan because the insurance covers the unpaid loan balance. The premium is added onto the loan balance on a monthly basis. As soon as the loan is paid off, the insurance is cancelled or at the age of 66.

For additional insurance options please refer to our Financial Service Resources page by clicking here.

Guaranteed Asset Protection Insurance (GAP)

This insurance is designed to protect you when a gap exists between the actual value of your vehicle and the amount of money you owe on your loan.

Initially, your loan balance will possibly exceed the value of the vehicle you have financed. This is especially true if you use a small down payment or are not required to make a down payment at the time of purchase.

If your vehicle is stolen or totaled in an accident, your auto insurance company will cover only the replacement value of the vehicle. The remainder of the loan balance becomes your responsibility to pay and the replacement value is not always enough to cover the balance of the loan. GAP is designed to cover that difference.

Benefits of GAP protection are:

Protection from financial loss
Protection of your credit rating
Protection for the term of loan (up to 72 months)
Coverage for auto insurance deductibles
Benefits for new or used vehicles, including cars, light trucks, motorcycles and some other motorized vehicles
It gives you peace of mind that you are covered in case of loss

*Certain exclusions may apply. These products are provided to members through other independent companies for the benefit of Baylands FCU members. These products are not federally insured, are not obligations of the Credit Union, and are not guaranteed by the Credit Union or any affiliated entity.