CUNA Mutual Group Protection Conversion Michigan Community CU and Community Choice CU present… CUNA Mutual Group Protection Conversion

We will cover… Mailers going to members with existing debt protection, and what they have to do What the new products are and how the pricing will work What is interim process for members getting new coverage?

For members with current coverage… 3/27/17- 600 members will start receiving letters explaining changes and updated agreements 3/27-17-5/1/17 Members requiring an “OPT IN” will mail their signed agreements to CCCU or bring into MCCU 5/1/17- new pricing and coverage goes into affect Our members who currently have debt protection will be converted to the new benefits and pricing structure on May 1st. Prior to that, we are mailing letters to let them know about these changes. What they have to do will depend on the type of loan and coverage they have. With the conversion, our member loan agreements will look a little different. Included in the mailer, these members will receive new member agreements for their records.

Why do some members need to Opt In? If the product offering has coverage changes, the member needs to select a new option, requiring an Opt In response. Our members who currently have debt protection will be converted to the new benefits and pricing structure on May 1st. Prior to that, we are mailing letters to let them know about these changes. What they have to do will depend on the type of loan and coverage they have. With the enhancements, our member loan agreements pertaining to debt protection will look a little different. Included in the mailer, these members will receive new member agreements for their records.

INTRODUCING… Life Life Plus One key change you will see is that CCCU products don’t have a separate “Family Leave”. It’s now actually included in our upgraded LifePlus product. This enhanced LIFE product also adds new “events” that are protected under this category, which can give our members even more peace of mind. ** review each protected event and information above **

Single coverage Joint coverage Pricing Changes Blended coverage Another exciting change is the new “blended coverage”, which gives members simpler pricing. After May 1st the first 2 borrowers on eligible loans are both automatically covered with protection is selected. ** The first two borrowers on eligible loans will automatically be covered when protection is selected. This includes a joint borrower, a cosigner or a guarantor.

Other changes Payments for Disability & Unemployment will be calculated Monthly instead of Daily (If you qualify for 1 day of coverage, you get a full month’s payment!) Premiums for Equity Loans being covered will no longer have them added to their balances every month. They will be deducted from their Checking Share. Daily Payments Monthly Payments

Life (becoming LifePlus) Single $0.099 Joint $0.149 $0.130 Consumer Life (becoming LifePlus) Single $0.099 Joint $0.149 $0.130 LifePlus Disability Single $0.249 Joint $0.379 $0.395 LifePlus Disability & Unemployment N/A $0.525 Credit Card $0.399 Equity Loans LifePlus Single $.099 Joint $.199 $.172 Single $.249 Joint $.379 $.450 LifePlus Disability and Unemployment NA $.525 Shown here is the Program fee schedule per $100 dollars of loan amount. From a high level what you can see is that the blended pricing is middle of the road between what our current “single” and “joint” coverage pricing was. This will be a savings for our members with joint borrowers, and for our individual borrowers, they WILL be receiving the added benefits and features of the new Life Plus product with the new fee amount.

Still to come… Job Aides available before 3/27/17 and emailed to Branches Scripting will be sent for use with common questions received via phone or on the teller line Similar changes were made to the Visa Protection agreement as well. Changes in the program fee section to reflect only blended pricing. And in the eligibility section, any borrowers will answer the eligibility questions when they elect for disability or unemployment coverage. Similar information was added in the “important notices” section including the maximum coverage of $50,000 and the section explaining that a new agreement replaces any old agreements previously signed.