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Securian Financial

Debt protection

Creating flexibility for you and your borrowers

In a recent credit union member survey, almost a third of respondents say they haven’t saved enough to cover an unexpected expense of $5001. And they wish they had a better financial safety net1.

Debt protection can help create a well-rounded financial safety net for your borrowers by cancelling all or part of an outstanding loan balance if certain protected events were to occur.

Debt protection programs are lending products that offer an alternative to traditional loan protection programs. And because they cancel all or part of the outstanding loan debt, the risk associated with lending is minimized.

Adding value for you and your borrowers

Debt protection helps borrowers by:

  • Allowing them to reallocate funds for other needs
  • Protecting their credit rating
  • Reducing risk of default and loss of collateral

Helps your financial institution by:

  • Providing products your customers need
  • Reducing loan defaults and delinquencies
  • Generating non-interest income

Loan types and payment options

Securian Financial’s programs cover many loan types, including:

  • Closed-end consumer loans
  • Revolving lines of credit and credit cards
  • Home equity loans and lines
  • Commercial and agricultural loans

Depending on the loan type, Securian offers two types of payment options:

Single premium

Premium is based on loan amount, paid upfront at time of loan and the fee may be refundable if paid-off early.

Monthly outstanding balance

Monthly premium is based on the outstanding balance each month and is “pay as you go” and added to the monthly payment.

Contact info

Existing policy assistance

Please refer to your current statement for contact information.

Let us help protect your members

Start a conversation to learn more about the benefits a strategic relationship with us can provide you and your members.

Contact our sales team

How Securian Financial’s debt protection sets itself apart

Options that keep you in control

  1. Plug-and-play - A complete portfolio of standardized debt protection programs that address each loan type and take the guesswork out of program design.
  2. Custom design – Together, we can design a protection program that fits the individual requirements of your institution and borrowers. Choose one benefit option or all of them, our a-la-cart pricing is designed to fit your specific needs.    

When you work with us, you have complete ownership of your debt protection program and the contractual relationship with your borrower. You can choose to administer and assume the risk in connection with your programs or contract with Securian Financial companies to take on program risk and administration.

Know the difference — debt protection verses credit insurance

While functionally these two protection products look the same for your borrowers, debt protection can offer financial institutions the flexibility to design a program that fits the needs of their specific financial institution.

  • Debt protection is a non-insurance product
  • Borrower doesn’t have a direct relationship with Securian Financial
  • No licensing requirements at the loan officer level
  • Can have same programs and rates across multiple states
  • More flexibility in features and protected events
  • More flexibility in fees and compensation
  • Involuntary unemployment option for credit unions
  1. Survey conducted by Securian Financial and KWP Consulting LLC, 2020.
DOFU 10-2021
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