Lake Trust offers two options for members who get a loan: Loan Protection¹ and Guaranteed Asset Protection (GAP)². These two coverage options give peace of mind by reducing the impact of a loan payment if the unexpected happens. Since 2021, Loan Protection has helped members save over $2.1 million in loan payments after unexpected events. This shows that unfortunate events happen, so it’s necessary to have a plan.
You can choose Loan Protection or Loan Protection Plus for most consumer loans at Lake Trust. These services, offered through our partners at TruStage®, help if a covered event prevents you or a co-borrower from making payments. Instead of straining your budget or falling behind, you can file a claim to have payments waived or canceled (up to contract limits). Covered events include:
Loan Protection Plus covers the above life events as well as:
Guaranteed Asset Protection (GAP) and GAP Plus are additional protection options offered to members who get an vehicle loan (which includes auto, boat, RV, motorcycle, or power sport vehicle) with Lake Trust. If your vehicle is stolen or totaled in an accident, your insurance will offer you a payout based on the depreciated value of your vehicle at that time. GAP helps cover the difference between what you owe and what insurance pays.
For example, say you have an auto loan with $12,000 left. One day, you’re in an accident, and your vehicle is totaled. Your insurance company offers you a payout of $10,000. After applying this payout to your auto loan, you would still owe the remaining $2,000 of the loan … on a vehicle you no longer have. If you have GAP, this coverage will cover the $2,000 difference, so you don’t have to worry about it!
If your vehicle is a total loss, GAP also covers up to $1,000 of your insurance deductible (which you typically still pay before any payout is awarded). And GAP Plus provides an additional $1,000 toward your replacement vehicle loan with Lake Trust .³
GAP deductible assistance provides up to $1,000 in deductible coverage if your vehicle is damaged but not totaled. If repair costs exceed your deductible, GAP applies the deductible amount to your loan, reducing your repair balance.
Loan Protection and GAP offer a few key differences that you need to consider.
Coverage Type
The most notable difference is that Loan Protection supports you if a covered life event prevents you from making your loan payment. While GAP helps pay for your collateral, or vehicle, if it’s totaled in an accident.
Eligible Loans
Loan Protection applies to most personal loans (auto, RV, boat, motorcycle, personal, signature, credit card, etc.), while GAP is exclusively for vehicle loans.
Purchase Time
You can add or remove Loan Protection at any time (if eligible) when you request it. Note: Adding this option after closing your loan, may result in a wait before benefits are available.
GAP can only be added before your auto loan closes. After funds are disbursed, you cannot add GAP.
Cost
Both Loan Protection and GAP are additional services with added costs. Loan Protection charges a monthly premium based on a percentage of your loan balance. But GAP is a one-time, fixed cost paid upfront when you get a vehicle loan.
Loan Protection and GAP are optional, and only you can decide whether they fit your needs. As with all types of insurance, there is a risk of paying for coverage and never using it. But if you do ever need to file a claim and use these coverage options, you could save thousands of dollars. And since you never know what obstacle life is going to place in your path, the added peace of mind that comes with adding Loan Protection and/or GAP may be worth it.
As mentioned earlier, you can add Loan Protection or Loan Protection Plus to your loan (if it qualifies) at any time. Call us at 888.267.7200 or visit a Lake Trust relationship center to discuss pricing options. If you add Loan Protection after closing your loan, you may have to wait a specific time for all the benefits to activate after signing up.
Add GAP to your vehicle loan before closing. If you’re pre-approved for a vehicle loan or about to close, tell our team you want GAP, and we’ll provide pricing for this one-time cost.
If you have Loan Protection, you can easily file a claim online with our partners at TruStage™⁴. In the top menu of our website, navigate to “Personal” then choose “TruStage Member Claim” in the menu under “Borrowing Resources”. Or just visit the claims site directly at lendingclaim.trustage.com to get started.
On the TruStage™ site, you’ll answer a few questions about your loan and situation, then submit your claim. You can also check your claim status or view FAQS.
Planning for the unexpected is essential for your financial wellness. Auto, home, health, and life insurance are common products that people use to add an extra layer of protection to their finances. If you have an accident or injury, the last thing you want to worry about is how you’ll make your loan payments. That’s why having additional coverage when you have a loan balance is a smart choice.
Speak to a Lake Trust team member today by calling 888.267.7200 or by visiting a relationship center to learn more about GAP and Loan Protection.
1Loan Protection is optional and will not affect your application for credit or the terms of any credit agreement required to obtain a loan. Certain eligibility requirements, conditions, and exclusions may apply. Please contact your loan representative or refer to the contract for a full explanation of the terms. You will receive the contract before you are required to pay for Loan Protection. You may cancel the protection at any time. If you cancel protection within 30 days you will receive a full refund of any fee paid.
2GAP, which includes deductible assistance, is not insurance; it is an optional debt cancellation product. GAP will not affect your application for credit or the terms of any credit agreement you have with us. Certain eligibility requirements, conditions and exclusions may apply. You will receive the contract before you are required to pay for GAP. You should carefully read the contract for a full explanation of the terms. If you choose GAP, adding the GAP Fee to the amount financed under your contract will increase the cost of GAP. You may cancel GAP at any time. If you cancel GAP within 90 days you will receive a full refund of any fee paid. GAP purchased from state-chartered credit unions in FL, GA, IA, IN, UT, VT, and WI may be with or without a refund provision. Prices of the refundable and non-refundable products are likely to differ. If you purchase a refundable product, you may cancel at any time during the loan and receive a refund of the unearned fee. GAP purchased from state-chartered credit unions in CO, MO or SC may be canceled at any time during the loan and receive a refund of the unearned fee.
3Purchase your replacement vehicle and finance with us within 60 days of your primary insurance settlement. To add GAP Plus, let us know when you take out your loan.
4TruStage® is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.