TruStage™ Payment Guard Insurance FAQs

1. What is TruStage Payment Guard?

TruStage Payment Guard Insurance offers digital lenders and banks a powerful tool to help protect their loan portfolios and reduce charge-offs, helping them remain competitive and attract more borrowers. This unique and straightforward benefit provides additional financial security for borrowers, covering situations such as involuntary job loss or injury and sickness that result in the inability to work for more than 30 days.

2. How does Payment Guard help retain lost revenue from charge-offs?

Payment Guard helps to protect your portfolio by covering borrowers' obligations in case of unexpected job loss or disability. By wrapping every loan with Payment Guard, you could lower default rates and retain net interest income, thus reducing revenue loss from charge-offs. For instance, one personal loan lender saw a 23% reduction in loans that were at risk of default after implementing Payment Guard.¹

3. Could Payment Guard really lower delinquency and improve lender portfolios?

Yes, Payment Guard has been proven to lower delinquency rates and enhance portfolio performance. Lenders using Payment Guard experienced a 29% reduction in defaults, which directly contributes to improved net interest income.² By providing borrowers with the reassurance that their loan payments are protected if covered, delinquency rates are reduced, leading to a healthier loan portfolio.

4. Payment Guard is a new product, and TruStage is not well-known in DLI segments. Why should we trust it?

TruStage has a strong track record in the insurance industry. Payment Guard leverages this experience to offer robust protection for your borrowers and portfolio. The positive outcomes from current customers, including significant reductions in default rates and increases in loan conversions, attest to the product's effectiveness and reliability.

5. What is the implementation process and timing for Payment Guard?

Implementing Payment Guard is designed to be straightforward and quick. The process involves a regularly scheduled data-file upload, with no technical integration required. Most lenders can be up and running in less than a couple of weeks, allowing you to swiftly start benefiting from the protection and gain peace of mind that Payment Guard offers your borrowers.

6. What is the potential cost of the product?

The cost of Payment Guard depends on various factors such as the number of loans and the coverage terms. For a detailed estimate, please use the cost calculator available on our website. This tool will provide you with a customized cost breakdown based on your specific needs and circumstances.

7. How satisfied are end-users with Payment Guard?

End-user customer satisfaction is high with Payment Guard. By providing protection against unforeseen financial difficulties, Payment Guard helps deliver peace of mind and builds loyalty among borrowers. Customers appreciate the added security, which in turn helps enhance their overall satisfaction and commitment to your institution.

8. What types of job losses are covered?

A Job Loss is covered if: (a) the loss of employment meets the definition of Job Loss as defined in the Certificate of Insurance; (b) the Job Loss starts more than 30 days after the certificate effective date; and (c) the Job Loss is not specifically excluded from coverage.

9. What is a covered total disability?

A Total Disability is covered if: (a) The borrower’s disability meets the definition of Total Disability; (b) Total Disability starts more than 30 days after the certificate effective date; (c) Their physician has stated that their Total Disability is expected to last longer than 30 days; and (d) the Total Disability is not specifically excluded from coverage.

10. How are premiums calculated?

Transactions are covered once they are funded (or in the instance of subscriptions, opened). Premium calculations are based on the data file we receive from you at the end of each month. Premiums are calculated on the outstanding consumer transaction balance or the defined benefit of coverage each month. Please refer to the estimated premium calculator for more details. Any premium changes will be communicated 30 days before going into effect.