YOUR PROTECTION
GAP covers the deficiency balance on your loan in the event of a total loss.
Credit Protection protects your family's financial future.
 


Payment Protection Calculators
By protecting your loan, you're also helping protect your credit rating.

Quick Links:
Credit Protection Home    Needs Calculator
Calculate your need for protection.
Could you make it on Standard Disability or on State Unemployment Benefits?

How much would you receive if you became disabled? Here’s a worksheet that will help you determine if you have enough protection to cover your loan payments if you became disabled and were unable to work.

List your monthly take-home income (without overtime). $
List the percentage of income you would receive if you became disabled.
(Most employee disability plans provide benefits equal to 60 percent of take-home pay. If you do not have disability protection through work, put zero here.)
   %
Monthly disability income:
$

Calculate your monthly expenses.

Mortgage or rent payment $
Car payment $
Car insurance $
Utilities (electricity, gas, water, etc.) $
Credit card payment(s) (use minimum payment) $
Food and clothing $
Other loan payments $
Other monthly expenses $
Minimum monthly expenses:
$

Compare the income you would receive if you became disabled with your expenses.

Money remaining for other expenses:
$

If your expenses exceed your disability payment, you'll need to draw on backup savings to meet ongoing expenses.

Total expenses covered by disability protection:
$

Monthly expenses such as car payments, credit card payments and other loan payments are expenses disability protection covers. Disability protection is designed to pay your loan payments (up to the contract limit) if you become ill or disabled and are unable to work.

Disability Protection
If you have disability protection through your employer, make sure you know:

  1. The waiting period. According to employee benefits specialists, disability plans require an average waiting period of 60 days before you receive benefits.
  2. Short-term benefits. Employee benefits specialists say that the most common employee plan benefit amount is 60 percent of take-home pay for up to six months. Some companies offer long-term disability benefits as well. Check with your employer for details.
  3. Social Security rules and regulations. While Social Security does provide long-term disability benefits, those benefits are capped at a portion of normal take-home pay. More than 25 percent of initial requests for Social Security disability are denied.*

Involuntary Unemployment Protection
Losing a job is something we'd rather not think about. Unfortunately, it can be a very real possibility. If you experience a job loss, will you receive a severance package from your employer? Are you prepared for the additional stress and financial strain of being unemployed?

  • About 35 percent of workers are exhausting their state unemployment benefits before finding work. Source U.S. Dept of Labor, Bureau of Labor statistics

*Overview of Entitlement Programs, Green Book, Ways and Means Committee, Washington, D.C.

Life Protection

It’s also important to have life protection to financially protect your home and family if you couldn’t be there for them. Enter the amount that would allow your family to:

Payoff your debts $
Pay funeral and estate costs $
Replace your income $
Provide for future needs of your survivors $
Total:
$

Compare the total to the amount of life protection you currently have. If there’s a gap, you may wish to consider adding additional protection, such as Payment Protection.

It costs between $139,000 to $279,500 to raise a child to age 18, according to a year 2005 study by the U.S. Department of Agriculture. And, the college years will cost another $57,000 to $126,000.

Start Over