Frequently Asked Questions

What is GAP and why do I need it?

In today's market, vehicle depreciation is at its highest in years!  Your vehicle will lose, on average, 20% of its value in the first year and 35% in the first 5 years of ownership.  You would have to keep your car for at least 5 years before the value begins to level out.  Do you keep your cars longer than that, and what if you total your vehicle in an accident during that time?  If you get into an accident, and your car is declared a total loss, you could be out thousands of dollars paying off that "GAP" between what you owe on your vehicle and what your car insurance company pays for a totaled vehicle settlement.  You could end up making monthly payments on a totaled car for a long while after it is gone.  Our Credit Unions all use "GAP Plus" which will give you $1000 as a down payment toward the purchase of your next car!  All you need to do is finance with the Credit Union again!

Example: A 2001 Chevrolet Impala was purchased and financed in November 2007 for $7,287.00. The vehicle was totaled in January 2009 with a loan balance due of $5,325.00, although the actual insurance settlement was only $4,000.00.  A gap of $1,325.00 was created, which could be covered by our GAP insurance plan. If the borrower has GAP Plus protection, there would be an additional credit of $1,000.00 toward the replacement vehicle as long as it is financed at the credit union. The total GAP benefit for the member would be $2,325.00. The average cost of a GAP contract is $250.00. In this example, the credit union member who purchased GAP Plus would see a net total benefit of $2,075.00.

What are the benefits of Mechanical Breakdown Insurance (MBI)?

Mechanical Breakdown Insurance is based on the vehicle's model year and current mileage. Depending  on your vehicle's coverage eligibility, Mechanical Breakdown Insurance could cover repairs until your car has 125,000 miles on it. MBI covers the engine's internal components along with some external parts such as water pumps, alternators, and power steering pumps. It also covers transmissions, drive axle assemblies, fuel delivery systems, front suspensions, and some electrical items.
 
All it takes to get your vehicle repaired is to have the repair facility call our provider, get authorization, and the provider will pay the facility directly once the repairs are completed. The insurance may be used all over the United States. There is no deductible involved. All plans include 24/7/365 emergency road service, and there is a 30-day money back guarantee. MBI may be purchased at any time...not just when financing the vehicle.
 
Another advantage is that the policy is transferable for a small fee to the next owner of your vehicle, therefore making it more valuable and possibly easier to sell at a later date. Our provider has been in business for more than 25 years and is backed by an A.M. Best A-rated insurance company so you can count on them to be there when you need them.
 
Please check with your Credit Union to see if it offers Mechanical Breakdown Insurance and to get the details.

Why would I need Mortgage Life and Disability Insurance?

Your Credit Union may have mortgage protection available to you for your family and loved ones. Owning a Mortgage Life, Disability and/or Accidental Death insurance policy is a way to make sure that your family can stay in your home after an unexpected injury or worse, death.
 
Group life, disability, and accidental death insurance may be applied for when financing or refinancing your residential or mobile home, or anytime during the term of the loan.

Life coverage is available up to a maximum of  $300,000 with a minimum of $10,000. You need to be at least 18 years old and, for the maximum amount, the age limit is 64. If you want coverage up to $50,000, the maximum age is 59. Disability coverage for up to two years is available for a member who is under the age of 50. If you are 50-64, disability payments may be made for up to 1 year.  Accidental Death coverage is available for anyone 18 through 69 years old with a mortgage loan term of 10 to 40 years. Accidental death coverage does not require any health questions or health testing.
 
All of these plans are available for either single or joint coverage. Monthly premiums are paid via Automated Clearing House (ACH) so there are no concerns about mailing premiums on time. The application process is quick and easy.

What is Pet Health Insurance?

In the United States 6 out of 10 people own pets. That equals 73 million dogs and 82 million cats. Anyone who has visited a veterinarian lately knows that the cost of pet health care has increased dramatically. And anyone who owns a pet knows that they need an annual checkup which can cost between $75.00 and $125.00 dollars, depending on the office visit cost and shots needed. An office visit for an illness can start around $100.00 and climb quickly from there, especially if lab work, x-rays or surgery are needed.

Pet health insurance may be available through your credit union. This policy can assist with the costs of your pet’s health care. The policy pays 80% of the actual veterinarian bill (after deductible). Wellness plans are available without any deductible. There is a discount when multiple pets are insured, and the member can choose any veterinarian, specialist or emergency care center.

Getting a quote is simple and easy at our provider's online site. Monthly premiums can be charged to a credit card with a service charge. Payroll deduction is even available.

Your pets are members of the family. Their health care is important, and pet health insurance is a way to ensure they get the care they need.

How much does health insurance cost?

Health insurance costs are determined by your age, gender, and the zip code in which you live.  Other factors, such as industry, may also factor into the rates.  For a quote on health insurance, please contact an Employee Benefits Specialist at 800-287-3379.

What is a PPO Plan?

PPO stands for Preferred Provider Organization.  This is a system of health care that has a discounted fee structure, in exchange for granting a provider preferred status in treating plan members.  Members with this type of coverage generally do not need to work through a primary care physician or obtain referrals for their care. 

What is a HMO?

HMO stands for Health Maintenance Organization.  It is a form of health insurance in which there is an agreement between the organization and the employer to provide necessary health care services for employees on a prepaid basis. HMO plans usually require an insured person to make a co-payment for the services performed instead of imposing any deductibles. The HMO would then pick up the remainder of the cost after the co-payment. HMO plans usually require a referral and a pre-certification to receive services from a specialist.

Each member must pick a primary care physician from a group of network doctors. A referral is required any time an insured wishes to see another network physician. This referral is usually required prior to the appointment, except in an emergency situation. The advantage of having an HMO plan is there are no deductibles, and the coverage is usually low cost. The disadvantages of having an HMO plan are the requirement  to choose a physician from a specific list of physicians; the need to get a prior referral before seeing a specialist; and the need to get pre-certification before certain procedures.

What is a Prescription Drug Formulary?

A prescription drug formulary is a list of drugs that an insurance company selects as the only drugs that they will cover.

What is an Explanation of Benefits?

An Explanation of Benefits (EOB) is a written statement sent to a member stating the amount of the claim and either the reason why the claim was paid or an explanation of why it was denied.

What is a Health Savings Account?

A Health Savings Account (HSA) is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. An HDHP generally costs less than traditional health care coverage. As a result, the money that you save on insurance can therefore be put into your Health Savings Account.

You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow.

What type of coverages are available with Dental Insurance?

There are several coverage choices available with dental insurance.  Generally, dental insurance will cover preventative dentistry, minor and major work such as fillings, crowns and on-lays. Some plans will also provide benefits for Orthodontic care.  Most dental plans have a deductible associated with them.  The deductible can be calendar year or lifetime.  Most dental plans also have a calendar year maximum on the amount the plan will pay toward covered dental expenses.  This amount is generally $1,000, $1,500, or $2,000. 

What is Disability Insurance?

If you became disabled and were not able to work, how would you pay your bills?  Disability insurance provides a benefit when an individual becomes ill or is injured and cannot work.  This type of insurance can be a short-term policy, lasting for up to 90 days or 6 months, or a long-term policy, lasting 2 years, 5 years, to age 65 or to Normal Social Security Retirement Age.  The benefit received is usually a percentage of your monthly or weekly earnings and is capped at the benefit amount.  This type of insurance does not cover injuries that are work related. Disability Insurance is an insurance designed to protect your paycheck.

How much Life Insurance should I have?

A number of different factors are taken into consideration when determining the amount of life insurance you should have.  Generally, you should include any debt, such as credit card balances, mortgage balances and outstanding tuition costs.  Final expenses such as burial and funeral costs should also be factored in when considering life insurance.