Debt Protection

Life is Unpredictable

There are a wide range of unexpected events that could leave you and your family scrambling to pay monthly bills.  That's why it is important you take action to safeguard your family against these types of events to ensure loan payments can be made on time.  That's where Katahdin Federal Credit Union Debt Protection comes in.  Under the Katahdin Federal Credit Union Debt Protection program, your loan balance may be canceled or your monthly loan payments canceled without penalty or added interest.  You benefit from the peace of mind knowing you and your credit rating are protected--and most importantly-that your family is protected.

Availability and Plan Options

Consumer loans:  Closed-end consumer loans if the loan has a term of 120 months or less; consumer lines of credit; and credit cards

Home Equity loans:  Closed-end home equity loans (e.g. second mortgages) and home equity lines of credit


Definitions of coverage:

Death-Give your family time to get back on their feet financially.

Disability-Help avoid bills piling up as you try to regain your health and earning capacity.  Use this benefit as a supplement to any disability coverage you may have at work.

Involuntary Unemployment-Ensure your loan payment will be taken care of as you search for new employment.