Credit Life & Credit Disability

Consider Credit Life and Credit Disability from CMFG Life Insurance Company

Life is full of the unexpected!

You can't predict or prevent a debilitating or life-threatening event. But you can prepare for it. That's what Credit Life and Credit Disability Insurance is all about, helping to protect our member-owners and their families during times of disability or death. That's why American Airlines Credit Union makes this important benefit available. Because we know that without credit insurance, the effects of a death or disabling event can lead to further financial disaster for you or your family.

Protecting Members For More Than 80 Years

The first federally chartered credit unions began in 1934. To those early credit union leaders, it was disheartening when a credit union member took out a loan and then died suddenly or became disabled. Invariably, a family member or the co-signer(s) would be responsible for the balance of the loan. Several leaders of the credit union movement began to see that insurance was as fundamental to credit unions as savings and credit, and they believed the movement should supply its own insurance. So, in 1935, CMFG Life Insurance Company was formed and began offering credit insurance exclusively to credit union members.

Helping Real-World American Airlines Credit Union Members

Through the years, there have been countless American Airlines Credit Union member-owners who have benefited from credit insurance. Time and again, this important benefit has played an absolutely critical role in a family's recovery from a disaster. When illness strikes, this coverage helps to shield the family from ongoing loan payments. When injuries and accidents occur, Credit Life and Credit Disability Insurance can help ease the family's financial burden. It has been gratifying to see our member-owners helped in their hour of greatest need.

How do I determine if insurance is a good value?

There are basically two things to consider - rate and the payout ratio. At American Airlines Credit Union, we make CMFG Life Insurance Company coverage available, at great low rates. Credit Life Insurance is available for $0.59 cents per $1000 of the outstanding monthly loan balance for single coverage, and $0.89 cents per $1000 of the outstanding monthly loan balance for joint coverage. Credit Disability Insurance is available for $1.72 cents per $1000 of the outstanding monthly loan balance. A monthly premium is calculated on the declining loan balance, assuring our member-owners are only paying for the insurance they need. If you've ever priced credit term life or disability coverage in the market place before, you're undoubtedly amazed at what a marvelous savings this is.

How do I get insurance?

The easiest way to enroll is to add the insurance when you apply for your loan, there are no health questions or extra paperwork at that time. Those who apply for credit life insurance are eligible up to age 70. Those who apply for credit disability are eligible up to age 66 if they're actively at work when they enroll.

If you wait more than 30 days from the time of your loan, you'll need to provide evidence of insurability before you can get the insurance (be sure to review all the benefits and limitations of the coverage before making a decision to purchase the insurance; exclusions do apply).

Take a moment and consider if this makes sense for you. If your answer is "yes," call us at (800) 533-0035.