CT Labor Department Federal Credit Union

Insurance

Credit Disability Insurance

CLDFCU offers Disability Insurance. The insurance is coverage that generally provides non-occupational benefits to an employee for accident or sickness not covered by employee compensation laws. Note the maximum amount of insurance that can be purchased is $30,000. The maximum loan duration for this credit disability insurance is 120 months. The cost of this insurance is $1.70 per $1000 of the loan balance.

To qualify for this voluntary insurance:

  • You must not have reached the maximum eligible age of 70 on the date of your loan.
  • You must be actively at work and regularly perform all the usual duties of full occupation.
  • Only one member may be insured for any one loan.

CLDFCU has chosen a reputable provider. For sixty years, CUNA Mutual Insurance Society has been protecting credit union members with more credit life and credit disability insurance than any other company in the world. Today, CUNA Mutual provides more than $76 million in coverage for credit unions and their members in 59 countries around the world.

Credit Life Insurance

CLDFCU offers Credit Life Insurance which will pay off or reduces the eligible loan balance in the event of member's death. The Maximum amount of insurance coverage is $30,000. The maximum loan term is 120 months. The cost of Credit Life Insurance is $0.70 per $1,000 of the current loan balance if you chose single coverage, or $1.05 per $1,000 of the current loan balance if joint Credit Life Insurance coverage is put on the loan.

To qualify for this voluntary insurance:

  • Insurance will be terminated once the member reaches the age of 70.
  • You must not have reached the maximum age for eligiblility of 70 years old.
  • Joint Credit Life Insurance is availablefor both the borrower and the co-signor of the loan if applicable.

GAP Insurance

Guarantee Asset Protection Insurance or GAP Insurance closes the "gap" between the appraised value your insurance is willing to pay and the balance you owe on your vehicle loan should your vehicle be totaled in an accident or if your vehicle is stolen. When obtaining a vehicle loan through the credit union, we offer GAP insurance for less than half of the cost the dealership will charge you, giving you peace of mind that you are protected and also saves you money.  To illustrate, please consider the following example:

You have a vehicle loan with CLDFCU and owe $20,000 on your loan. Your car is stolen or in an accident and totaled. Your insurance company appraises the car at $15000.00. The insurance company sends a check to CLDFCU for $15,000. Now you still have a balance owed of $5,000.00 on a vehicle you no longer own. If you purchased GAP Insurance...no worries, the insurance policy covers the difference and your loan is now paid in full. Without the insurance you would still be liable for the unpaid balance.