Bank of America offers Borrowers Protection PlanÒ, an easy way for new home owners to safeguard themselves and their family from sudden income losses resulting from certain unexpected events and to provide financial relief when they need it most.
Under the plan you are protected in the event of involuntary unemployment, disability, hospitalization, and loss of life.
· Borrowers Protection PlanÒ offers you 12 cancelled principal and interest loan payments for each protection category.
· It’s complimentary for the first year for a single borrower! After the first year, you may cancel or elect to continue coverage.
Frequently Asked Questions about Borrowers Protection Plan®
Important Information about Borrowers Protection Plan (BPP)
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Your purchase of BPP is optional. Whether or not you purchase BPP will not affect your application for credit or the terms of any existing credit agreement you have with Bank of America.
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Additional information will be provided before you are required to pay for BPP. This information will include a copyof the Addendum, which is the contract containing the terms and conditions of BPP.
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An exclusionary period during the first 90 days of protection and other eligibility requirements, conditions and exclusions that may prevent you from receiving benefits under BPP. Carefully read the Addendum for a full explanation of the terms and conditions of BPP.
For more information, please contact Anne Collins or your personal Bank of America Home Loan Officer.
1. Will I have to take a medical exam to purchase the Borrowers Protection Plan?
You will not take a medical exam, nor answer a health questionnaire to purchase the Borrowers
Protection Plan (BPP). It is an optional feature of your Bank of America loan – it is not an insurance
product.
2. Can I enroll in the Borrowers Protection Plan after my loan closing?
You cannot request the plan after your closing. The easiest way to ensure it is added to your loan is by
calling 1.800.696.7613 before your closing.
3. If I were to lose my job, how can Borrowers Protection Plan help me?
In the event you involuntarily lose your job (e.g. lay-off), you can ask Bank of America to cancel up to 12 months of your monthly principal and interest payments. With this safety net, you’ll free up more of your cash to pay other bills while you focus on getting your career back on track.
4. If I were to become disabled, how can Borrowers Protection Plan help me?
In the event you experience a disabling illness or injury, you can ask Bank of America to cancel up to 12 months of your monthly principal and interest payments. It would be one less thing for you to worry about while you focus on your recovery.
5. If I were to become hospitalized, how can Borrowers Protection Plan help me?
Bank of America will cancel one monthly principal and interest payment each time (up to 12 occurrences) you spend at least two consecutive nights in a hospital per payment period.
6. If I were to die, how can Borrowers Protection Plan help my family?
If you or a protected co-borrower were to die, your family can ask Bank of America to cancel up to 12 monthly principal and interest payments. Think of the peace of mind you’d have knowing your family wouldn’t have to worry about paying the mortgage during a very difficult time.
7. How do I pay my protection fees?
The monthly BPP fee will be included automatically in your monthly mortgage payment. Your mortgage statement will reflect protection fees under “Optional Products.” Protection fees are not financed as part of the loan.
8. Can I change my plan?
Depending on the plan you select, you may be able to reduce your level of protection. There is no fee to change your plan and you may cancel your protection at anytime.
9. How do I request benefits?
You will not be able to request benefits for any event that occurs within the first 90 days. After that you start the process with a phone call to the BPP Service Center where a Bank of America Associate will assist you with your claim. Eligibility requirements and contact information will be included in your closing package.
10. Who do I contact if I have questions about Borrowers Protection Plan before loan closing?
Call 1.800.696.7613 to speak to a Bank of America representative.