Vehicle Loans

Debt Cancellation Highlights

Debt Cancellation (DC) provides financial security if your income is reduced or eliminated due to an unexpected life event. Designed to cover the primary and co-borrower by offering payment protection in the event of Loss of Life, Terminal Medical Condition, Critical Period Disability, Critical Period Hospitalization and Critical Period Involuntary Job Loss. Coverage for the Co-Borrower is available for Loss of Life and Terminal Medical Condition.

Debt Cancellation is available at the time you close your vehicle loan with Farm Bureau Bank. Various plans and options are available.

Debt Cancellation Available Plans

Summary of Farm Bureau Bank Debt Cancellation Plan

Important Debt Cancellation Plan Information
Your purchase of the Debt Cancellation Plan is optional, and your decision to purchase or not to purchase the Debt Cancellation Plan will not affect your application for credit or any other credit arrangement with Farm Bureau Bank. If you choose to enroll in the Debt Cancellation Plan, you will receive the Farm Bureau Bank Debt Cancellation Rider to Loan. The Rider includes a complete explanation of the eligibility requirements, conditions and exclusions that could prevent you from receiving protection under the Debt Cancellation Plan. This is a summary of the terms and conditions of the Debt Cancellation Plan and includes a description of all available Plan protections some of which you may or may not have selected. Refer to your Rider for specific Plan protections selected.

Protection For You (the primary borrower only)
The Debt Cancellation Plan protects the primary borrower, the person whose name appears first on the promissory note, with:

• Involuntary Job Loss Protection: If you lose your job and this job loss continues for 30 consecutive days, the Debt Cancellation Plan will cancel the monthly payment, up to $1,000, due in accordance with your note for a period beginning with the monthly payment first due after the 30 day waiting period and will continue as long as you remain unemployed, for up to 6 months for each job loss. To receive this protection, you must be employed full-time without interruption for the past 90 days (but not selfemployed or employed as an independent contractor) and working at least 30 hours per week in a non-seasonal occupation as of the date of your job loss.
• Hospitalization Protection: If you become hospitalized for at least 2 days, while under the continuous care of a physician, and your payment is due during your hospitalization, the Debt Cancellation Plan will cancel the monthly payment, up to $1,000, in accordance with your note first due after the 2 days for up to 1 month for each hospitalization.
• Disability Protection: If you are disabled and this disability continues for 30 consecutive days, the Debt Cancellation Plan will cancel the monthly payment, up to $1,000, due in accordance with your note for a period beginning with the monthly payment first due after the 30 day waiting period and will continue as long as you remain disabled, for up to 6 months for each disability. To receive this protection, you must be employed full-time (but not self-employed or employed as an independent contractor) and working at least 30 hours per week as of the date of disability.

Protection for Primary and Co-Borrowers:
The Debt Cancellation Plan provides the following types of protection to you, the primary borrower and your co-borrower, with:

• Loss of Life Protection: If you die, the Debt Cancellation Plan will cancel the outstanding balance due in accordance with your note as of the date of death, up to $100,000.
• Terminal Medical Condition Protection: If you receive a medical diagnosis of a condition that is expected to cause death within 6 months, the Debt Cancellation Plan will cancel the outstanding balance due in accordance with your note as of the date of medical diagnosis, up to $100,000.

Ending Your Protection:
You may terminate your Debt Cancellation Plan at any time. If you choose to terminate your Debt Cancellation Plan within 30 days of enrollment, we will credit any fee you have been charged for the Debt Cancellation Plan to your note.

Additional Important Information:

• To be eligible to apply for the Debt Cancellation Plan, you must be at least 18 years old and will not reach age 70 during the term of the Loan. The Rider provides a complete explanation of the eligibility requirements, conditions and exclusions for the various protections available under the Debt Cancellation Plan.
• Any changes in your employment status—including, but not limited to, if you later become self-employed or if you retire—may result in your being ineligible for Job Loss protection and/or Disability protection under the Plan. If you become ineligible for any of these protections as a result of a change in your employment status, you should consider whether it is in your best interest to remain in the Plan.
• Farm Bureau Bank reserves the right to modify the Debt Cancellation Plan (including the monthly fee), upon 30 days prior written notice to you.
• During the waiting period for any Debt Cancellation Plan protection, and while your request for debt cancellation is being processed, you must continue to make payments in accordance with your note.
• The amount of any debt cancelled under the Debt Cancellation Plan will not include any past due amounts, unpaid late fees or interest that arises after the date of loss.
• The amount of debt cancelled by the Debt Cancellation Plan may not be sufficient to cancel the total debt on your note or the monthly payment on that account.
• Cancelled debt under the Debt Cancellation Plan may be taxable as income to you. Please consult your tax advisor for guidance.
• The Debt Cancellation Plan is a contractual obligation of Farm Bureau Bank. The Debt Cancellation Plan fees are not bank deposits, and the Plan is not insured by the FDIC or any other agency of the United States.