When you take out a loan—whether it’s for a car, home improvement project or personal need—you’re making a commitment. What happens if life throws a curveball: illness, job loss, disability? That’s where loan insurance (sometimes called loan protection insurance) comes in.
At UHS, we believe in helping our members understand their options so they can make choices that support both their goals and their peace of mind.
The Benefits
- Protection when things go sideways. If you’re unable to work due to an injury or sickness, loan insurance may cover your monthly payments so you don’t fall behind.
- Helps preserve your credit. Missing payments can damage your credit profile. With loan insurance covering payments, you can avoid negative impacts and keep your financial momentum going.
- Peace of mind. Knowing there’s a backup in place allows you to focus on recovery or job search—not stress over how to meet your loan payment.
How to Decide If It’s Right for You
- Ask: “Could I cover this monthly loan payment if I lost my job tomorrow or got seriously ill for several months?”
- Review the policy terms carefully: waiting period, benefit duration, what qualifies for payment coverage.
- Compare the cost of the insurance vs. the cost of simply building up an emergency fund or other protection.
- Consider alternatives: Does your existing disability insurance or employment contract already offer protection?
UHS Employee FCU’s Approach
As your member-owned credit union, UHS EFCU wants you to make smart, informed financial decisions—not push you into products that don’t fit.
Suppose you’re taking a loan with us and are considering the optional loan insurance. In that case, we’ll provide full disclosures and personal consultation, so you understand what’s in it for you, not just what’s “available”.
Bottom line: Loan insurance can be a helpful safety net—especially for those who would struggle to cover loan payments after an unexpected event. But it’s not a one-size-fits-all solution.
Take a close look: cost vs benefit, coverage details, your existing protection. And if you’d like help reviewing your options, stop by or contact UHS EFCU—we’re here to help you build financial well-being the way you want. Learn More – https://cuonlineuhs.org/loans/loan-insurance/