Payment Protection & GAP
Protect yourself, your family, and your credit!
The consequences of your disability or death could be devastating to you and your family’s financial well-being. Consider what portion of your income maintains your family’s welfare and then ask yourself what would happen if you no longer had your income. As well, it can severely damage your credit if you’re unable to make your payments.
We offer two different and affordable payment protection plans for most of our loans. Both provide premiums that can be figured in with your GECU loan payment and neither require a physical – you simply must meet eligibility requirements.
Disability Payment Protection:
- If you become disabled and under the care of a doctor, this plan makes your loan payment until you can return to work, or until the loan is paid off (whichever comes first).*
- Benefits are paid in addition to any other disability benefits you receive.
- Covers both injury and illness and doesn’t require hospitalization.
Life Payment Protection:
- In the event of your death, this plan pays off the scheduled balance of your loan.*
- Available for the borrower (single) or the borrower and co-borrower (joint protection).
Guaranteed Asset Protection (GAP)
Protect your finances and asset if it were stolen or totaled.
As a result of depreciation during the first few years that you own your: vehicle, motorcycle, boat, or RV, the value may be lower than the amount owed on the loan. As the value declines, your loan balance can be significantly higher, leaving a gap between the value and the amount you still owe.
If your: vehicle, motorcycle, boat, or RV were stolen or totaled in an accident, you may assume the insurance you have is sufficient to cover the losses. When it is declared a total loss, however, your insurance settlement will generally pay the market value less the insurance deductible. This amount may be substantially less than the balance due on the loan. You would then be liable to pay the difference between your insurance settlement and your outstanding loan balance. This is where GAP steps in.
GAP covers the deficiency balance between the market value plus the insurance deductible (up to $1,000)** and the loan balance you still owe. By having GAP, you avoid having to pay the out-of-pocket expenses on the remainder of your loan balance if it were to be stolen or totaled. Exclusions do apply. Please thoroughly read your GAP waiver for full exclusion details.
Here’s an example of how GAP works:***
If you were to purchase a new vehicle based on a sale price of $18,000, after one year, the market value of your vehicle could be $11,000. The amount you still owe on your loan would be $15,000. That leaves a gap of $4,000 between what you owe and the actual value of your vehicle as assessed by your insurance company.
GAP would step-in to pay your auto insurance deductible (up to $1,000) and the deficiency between the value of your vehicle and the loan payoff - for a total of $5,000 in this example. With GAP, you would owe nothing to the credit union.
Our GAP is a flat amount that may be amortized over the life of the loan and figured directly in with your GECU loan payment or can be paid with a one-time payment. You may also add GAP to your loan at any time during the life of the loan.
To add Payment Protection or GAP to your loan:
- Call a loan officer at: 513.243.4328 or 800.542.7093
- Meet with a loan officer at our: Reading Road, Mason, Loveland, or Fairfield offices; Eastgate office by appointment only.
*Please refer to your payment protection certificate for a complete explanation of benefits. The information provided is only a summary of the provisions of the policy or certificate. Terms and conditions are set forth in the Group Master Policy or Individual Policy and may vary accordingly. You are encouraged to read the certificate for specific details of coverage. GECU’s payment protection plans are administered by the Insurance Center and coverage is underwritten by: American Modern Life Insurance Company, Amelia, Ohio.
**Insurance Deductible: Deductible coverage not available in AR or IL.
***Sample: The information in the above example is for illustrative purposes only. The actual GAP payment in relation to the value of a particular vehicle may vary. The information above is intended as an outline of GECU’s GAP program. For exact coverage, exclusions, and limitations, please consult your actual GAP agreement or waiver. GAP is NOT offered as auto insurance coverage, it is only a protection plan to cover your outstanding loan balance if your: vehicle, motorcycle, boat, or RV were stolen or damaged beyond repair. The purchase of GAP is voluntary and cannot be required as a condition of loan approval.