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New Securian Program Helps With Loan Payments in Case of Lost Income

Posted on: Thursday, 28 May 2009, 09:52 CDT

ST. PAUL, Minn., May 28 /PRNewswire/ -- Securian's new debt protection program, Payment Assurance, cancels or suspends a borrower's loan payment for up to six months per occurrence of involuntary unemployment. As a non-contributory program, Payment Assurance allows a financial institution to cover all or select loan portfolios at no charge to the borrower.

"This program is paid for by the lender and complimentary to the borrower," said Kristi Nelson, actuary and product development director, Securian Financial Group. "Securian Payment Assurance provides a competitive marketing advantage by providing a way to attract more loans, reduce loan delinquency and protect borrowers across multiple loan types."

While it's easy to compare Securian's new product to the income loss protection programs that automakers provide, Payment Assurance offers better features for financial institutions, including:

• Payment Assurance protection covers the entire term of the loan. The typical automakers' program will provide protection only for a short period of time, such as the first year of the loan.
• A $1,500 monthly benefit maximum compared to the typical automakers' monthly maximum of $500.
• A choice between a cancellation or suspension benefit, and a choice between a three- or six-month benefit per occurrence of involuntary unemployment. Other programs are not as flexible.
• Coverage can extend beyond auto loans to other loan types.

"Involuntary unemployment is one of the most significant causes for loan delinquency right now," said Nelson. "Financial institutions that offer Payment Assurance can keep loans out of the collection queue and better manage lending risk in this challenging economy."

Securian Financial Group, Inc. (www.securian.com) was founded in 1880 and has served financial institutions for over 50 years as a provider of insurance, debt protection, loan documents and marketing services. Securian and its affiliates serve more than 4,000 financial institutions across the United States.

SOURCE Securian Financial Group, Inc.

Source: PR Newswire

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