debt protection

When life throws you lemons, dodge them with debt protection insurance from SunWest.

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what is debt protection?

Debt Protection insurance is a type of loan debt coverage available for closed-end personal loans, credit cards, and closed-end home equity loans of 120 months or less.

This coverage alleviates stress in financially tumultuous situations that prevent you from making your monthly loan payments.

when debt protection kicks in:

loss of job

becoming
disabled

loss of life

Debt protection covers your monthly loan payment in these protected life events with no added interest, penalties or hits to your credit.

Your local Arizona credit union has your back and a plan to protect your financial security through our comprehensive debt protection program.

plan out your protection

avoid the spiral

Debt protection gives you time to get back on your feet + keeps the bills from piling up.

this and that

It can be used in addition to any disability coverage you may have through work (which usually only covers 60 percent of your pay).

free and clear

In the event of death, debt protection allows your beneficiary to claim your full assets at no cost.

adjusts with your balance

Rather than paying a large up-front premium, you pay based on your loan balance. As it goes down, so does the amount you pay for coverage.

plan 1

death

disability

involuntary unemployment

Full remaining loan balance canceled as of date of death
‍
Up to a maximum of $75,000

Up to 6 payments per occurrence canceled

Maximum monthly cancellation of $1,000
‍
Maximum aggregate benefit of $15,000
over the term of the loan per borrower

Up to 4 payments canceled per occurrence

Maximum monthly cancellation of $1,000

Maximum aggregate benefit of $15,000 over the term of the loan per borrower.

rate per $1000 of loan balance
single borrower

$1.93

joint borrowers

$3.55

death

Full remaining loan balance canceled as of date of death
‍
Up to a maximum of $75,000

disability

Up to 6 payments per occurrence canceled

Maximum monthly cancellation of $1,000
‍
Maximum aggregate benefit of $15,000
over the term of the loan per borrower

involuntary unemployment

Up to 4 payments canceled per occurrence

Maximum monthly cancellation of $1,000

Maximum aggregate benefit of $15,000 over the term of the loan per borrower.

rate per $1000 of loan balance
single borrower

$1.93

joint borrowers

$3.55

plan 2

death

disability

Full remaining loan balance canceled as of date of death

Up to a maximum of $75,000

Up to 6 payments per occurrence canceled
‍
Maximum monthly cancellation of $1,000
‍
Maximum aggregate benefit of $15,000 over the term of the loan per borrower

rate per $1000 of loan balance
single borrower

$1.34

joint borrowers

$2.39

death

Full remaining loan balance canceled as of date of death
‍
Up to a maximum of $75,000

disability

Up to 6 payments per occurrence canceled

Maximum monthly cancellation of $1,000
‍
Maximum aggregate benefit of $15,000
over the term of the loan per borrower

rate per $1000 of loan balance
single borrower

$1.93

joint borrowers

$2.39

plan 3

death

Full remaining loan balance canceled as of date of death

Up to a maximum of $75,000

rate per $1000 of loan balance
single borrower

$0.65

joint borrowers

$1.05

death

Full remaining loan balance canceled as of date of death
‍
Up to a maximum of $75,000

rate per $1000 of loan balance
single borrower

$0.65

joint borrowers

$1.05

debt protection claims process

We know if you’re making a claim, your head might be spinning out, overwhelmed by everything. Let’s break the claims process down, so you know what comes next.

1.

report your debt protection claim.

To file a claim or check the status of a claim, call:
‍1-800-649-5768

2.

confirm eligibility of claim.

A loan representative will review your plan’s eligibility and request any necessary documentation to support your claim.

3.

loan is paid off or the payment date is adjusted.

Once we have approved your debt protection claim, we will either cancel your remaining balance or the number of loan payments covered by your plan.

peace of mind matters

Be prepared to cover monthly expenses when life throws you a curveball and you can’t swing fast enough. Give us a call before you start to panic about the new situation you’re facing financially.

Let’s work together to find the debt protection program that works best for what you need, when you need it.

602.866.11001.866.897.9378

Debt Protection FAQ

What types of loans are eligible for debt protection?

Closed-end personal loans, vehicle loans, lines of credit, credit cards, second mortgages and home equity lines of credit.

Who is eligible for debt protection?*

All Plans: Anyone under 70 that has not been advised of or treated during the last 2 years for: cancer, heart attack or coronary artery disease, stroke, cirrhosis, AIDS, or an immune system disorder, or had any test showing evidence of antibodies to the AIDS virus.

Plans 1 + 2: Currently working 24 hours or more per week.

‍Plan 1: Must not be self-employed.

‍*Eligibility can change at any time. Please speak with a representative to review current eligibility terms.

If I turn 70 during my loan, am I ineligible for debt protection coverage?

You can receive benefits up until your 70th birthday. Once you reach this age, your plan will be terminated, and you will no longer be charged for debt protection.

What exclusions are there to debt protection coverage?

Benefits will not be provided under any protected life event if: it is due to any intentionally self-inflicted injury, pre-existing condition, results from an act of war, results from the same occurrence for which you’ve previously used this benefit.

In addition to above:
Debt protection benefits will not be provided under disability if: it is related to a normal pregnancy or childbirth, or elective abortion. Complications due to pregnancy or childbirth will only be protected if the complications themselves are the cause of the disability.

Debt protection benefits will not be provided under involuntary unemployment if: your job is terminated because you retire, you resign for any reason, you are terminated for: willful or criminal misconduct, discharge from active military, a disability caused by sickness or injury, a strike or labor dispute.

Is there any delay in benefits being active?

There is a waiting period of 90 days for involuntary unemployment, and a 30-day elimination period for both disability and involuntary unemployment.

If I have a coborrower, do we both have to pay for coverage?

Not necessarily. You can choose to pay for debt protection coverage for only one person, however, that must be the primary borrower. You cannot have coverage for the joint only.

What happens to my loan debt when I die?

It depends on the type of loan debt, what was used as security for it, and how your estate is set up.

‍Example: If you own a home with a mortgage, and you pass away, the bank must be paid before your estate or beneficiary can claim ownership.

‍Example: If you owe on a personal loan or credit card when you pass, and you have funds in your checking or savings with that lender, the funds in your account will go toward your remaining loan balance and anything leftover will go to your beneficiary.