Posts Tagged 'protection'

Why credit life/disability is good for everyone

With the Great Recession, there has been a wave of financial industry regulations affecting everyone from small banks to giant investment firms – and credit unions like American 1. The Credit CARD Act, the opt-in regulations on overdraft protection, and now a scary-looking form that wants to scare you from opting out of credit life insurance on your loans.

Credit life works like this: if you die, your loan gets paid off. That’s it. Your family doesn’t have to come up with the payments. Nothing gets taken to court. It saves a giant hassle on your family’s end – and on our, the lender’s, end since we’re still getting paid. Win-win, right?

Credit disability works in a similar way, except if you get sick or injured, your loan payments are made while you’re off work. Accidents happen all the time, and so does sickness. None of it is expected. Disability coverage helps protect you from the unexpected.

We’ve gathered up our members’ best stories on insurance products and sharing them with the review board before this thing becomes law. We’re also urging them to reconsider this law because of its unintended consequences. You can read it for yourself.

The fact is, credit disability has helped a ton of American 1 members. They have peace of mind knowing that, if the worst happens, they don’t have to worry about their loan.

Here’s the thing: no member or member’s family who benefitted from credit life or disability protection ever regretted their decision. It’s not like a family member dies, the loan gets paid off, and the survivors think, “Gosh, why did Uncle Joe get that silly insurance?”

Or a member gets sick and says, “Man, why did I opt to have my loan paid for during this difficult time?” That doesn’t happen. Not ever.

No, these products equal peace of mind. It’s best to have fewer things to worry about when a loved one dies, gets injured, or becomes ill. And no one likes to think about it, but we’re all responsible adults here. Family members die. Family members get sick and have to take time off work. What counts is that we’re ready when the unfortunate time comes.

There’s no sense in scaring your away from valuable protection like credit life and disability. And for us, it helps all our members because we’re not trying to collect on past-due debts. Products like credit life and disability help to keep costs and rates down.

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MBP an affordable repair option

Jamie James

Sometimes, good decisions don’t reveal themselves until a bit of time passes.

Take Jamie James from Brooklyn. When she financed her 1998 Mercury Sable in the spring of 2005, she had never heard of American 1’s Mechanical Breakdown Protection (MBP), and had never been able to afford a manufacturer’s warranty.

But the small bump in her loan payment was very affordable.

“I thought it was a good deal,” Jamie says. “It was cheaper than the dealer’s service plan.”

Then, a month later, her transmission went out.

She noticed the trouble a month after she financed her vehicle. When the Sable’s transmission became difficult to shift, Jamie asked her husband – who knows a thing or two about cars – what the problem was.

There was definitely a problem with the transmission, and Jamie needed to take it in for repair.

“The repair guy said he had good news, that my transmission was covered by MBP,” Jamie says. “Then he said, ‘I have better news: you don’t have to pay a deductible.’”

Several more problems – and several thousand dollars – later, Jamie is glad she sprung for the extra protection MBP offered. All the repair work on her vehicle was covered by MBP, with no out-of-pocket expenses for Jamie.

“It was the first warranty I’d ever purchased,” Jamie says. “And it’s because of the price.”

If she hadn’t decided to have her Mercury covered, “I would’ve been paying a lot of money on that car,” she says.

Instead, she paid nothing.

“I’d buy it again,” Jamie says. “The amount of money I saved on repairs made the whole thing worth it.”

MBP makes repairs simple

Julie Bumpus

No worries. That’s all Julie Bumpus wanted when she went to visit her daughter in Detroit one day.

Instead, her 2004 Chrysler Sebring stalled out on the way. Luckily, Julie was able to pull into a gas station, restart her car, and drive back home to Jonesville. She took it to a mechanic, who told her the O2 sensor was out.

Julie gasped when she heard the repair cost. Then she remembered: her vehicle was covered by American 1’s Mechanical Breakdown Protection (MBP), a vehicle protection product that covers the cost of most mechanical issues.

The mechanic looked over her policy and got right to work. It was as simple as that.

“They said, ‘Yeah, we’ll take care of it,’” Julie says. “It was simple. I didn’t have to fill out a yard of paperwork, and I didn’t owe them a dime.”

No worries, indeed. She handed over the keys to her Sebring and had it back later that afternoon. With MBP, Julie never filled out any paperwork, paid no deductible, and has had no problems since then.

“It was a lifesaver,” she says.

Thanks to MBP, Julie didn’t have to worry about the cost of her sensor repairs and paying the rest of her bills. It was one less thing to worry about. In fact, getting MBP added to her loan made perfect sense – the cost was simply added to her already-low car payment.

Julie would recommend other American 1 members get MBP protection on their vehicles, too.

“Especially if someone has a tight budget, or a car that’s a few years old, you won’t have to worry about it,” she says. “You should always have some kind of backup for repairs.”

MBP ‘really came in handy’

Gale Bonner

Gale Bonner found a great deal at an American 1 used auto sale – a 2000 Mercury Grand Marquis with 69,000 miles on it at a good price.

But even great cars can have problems.

“You know how a car is,” Bonner says. “Something’s going to go wrong. If it’s not one thing, it’s another.”

Eventually, that “something” was her wheel bearings. Bonner noticed her wheels squeaked on turns. When she learned it was the wheel bearings, she couldn’t afford the $300-plus repair cost.

Luckily, Bonner opted for American 1’s Mechanical Breakdown Protection (MBP). She picked the Gold Package when she financed her vehicle, and her wheel bearings were covered.

“That really came in handy,” she says. “I’m glad I got the warranty. Otherwise, I wouldn’t have been able to afford it.”

The mechanic called to arrange payment, Bonner’s repairs were approved, and she got her Grand Marquis back the next day.

“That made me happy I put the extra money into the warranty,” Bonner says. “The whole thing was really simple.”

When Bonner originally financed the car, she was skeptical. Was a warranty worth the added payment? But because she was able to finance it into the loan, Bonner couldn’t pass up the deal.

“In my situation, I can’t afford costly repairs like that,” she says. “So I took a chance and financed the MBP with my car.”

She’s glad she did.

Bonner found her Gold MBP package covers more than she thought, and since her bearings were fixed, she’s used MBP again.

Now she recommends the protection to everyone who finances a vehicle with American 1.