Introduction

You never know when you might suddenly become ill, or involved in a serious accident. These events and others could leave you unable to work and therefore without the ability to make the monthly loan payment required by the bank. When applying for your new loan, consider taking advantage of the Payment Protection program offered by 1st Source Bank.

Don't make the mistake many consumers make when considering payment protection for a loan. Many people think their current insurance policies have enough coverage to cover the loan amount if something should happen. Your present life insurance may meet your financial needs before taking on a new loan, and employee disability insurance through your employer often pays only a portion of your regular income. Your resources could be strained even without a loan payment. The Plan pays your regular installment payments for as many days or months as you are disabled.

The decision is yours. You don't have to take insurance to get a loan. But, smart planners know how important it is to provide security for all your financial commitments. Take a look at the links to find out more information on how this program can protect your family and your credit.

Basic Benefits

The Payment Protection Plan is designed to provide a benefit for loan customers. It will pay your loan in full in case of death, and make payments to the bank if you are unable to work due to sickness or an accident. Any individual, regardless of the hazards of his/her occupation, who is actively employed at the time qualifies for payment protection. Your cost is not more than a few dollars each month, depending on your balance, and is included in your loan's monthly payment. With payment protection, you benefit because the Plan will protect your initial investment in the loan and, more importantly, the disability coverage will protect your good credit and peace of mind.

If you are unable to work because of a sickness or accident, the Plan pays your regular installment payments for as many days or months as you are disabled, limited only by the waiting period in the policy and the number of months of your loan contract. If you have kept current in your payments, and you die before your debt is fully paid, the Plan will pay off the entire unpaid balance, subject to the policy limits.

Can I Afford It?

Payment Protection is an affordable and convenient way to prepare for the unexpected.

• It's available as a service for our customers, and therefore group rates make it very affordable.
• For example, the cost of Credit Life on a $8,000 auto loan is $5.56 per month on a loan titled individually and $9.46 on a loan titled jointly.*
  
• There are no separate payments to make.
  
• Make no payments when applying. The insurance charge will be included in your regular monthly payment.
  

*Rates effective August 2001

When Insurance Stops

A refund of any unearned premium will be made if coverage terminates before the end of the term of insurance due to prepayment, refinancing, repossession, or at your request.

Life Benefits

Anyone whose death would cause a hardship on the financial stability of their family should consider life protection on their loan. The peace of mind this benefit brings can be invaluable. If you are married, you will want to consider joint life for both you and your spouse. Joint life is available in most states and is subject to regulations set by the state in which you reside.

Immediate Protection

As soon as you sign up and your loan is approved, you are insured for the coverage (s) you elected: Credit Life or Credit Disability and Credit Life. No physical is required, and you should include the premium in your monthly payment. There are no separate checks to write.

Disclosure

Payment Protection is not a deposit or other obligation of, or guaranteed by, 1st Source Bank or its affiliates.

Payment Protection is not insured by the Federal Deposit Insurance Corporation or any other agency of the United States, 1st Source Bank or its affiliates.

1st Source Bank may not condition an extension of credit on the consumer's purchase of payment protection from 1st Source Bank or from any of its affiliates, or on the consumer's agreement not to obtain, or prohibition on the consumer from obtaining, credit protection from an unaffiliated entity.

Disability Benefits

To be eligible for the benefits, you need only be under a physician's care and unable to work. Your family physician determines whether or not you are capable of working, and you do not have to be confined to bed, home or a hospital.

There is no limit to the number of times you may be disabled as long as each disability is covered under the term of the policy. Disabilities not covered are caused by:

• a preexisting illness, disease or physical condition
  
• pregnancy, except miscarriage caused by accident
  
• intentionally self-inflicted injuries

Filing a claim is not complicated at all. In practically every case a periodic report from you, your employer and your doctor is all that is needed.