Today Im Giving you a credit insurance article
this is about life ...
Why might you consider credit insurance?
If you’re like many people, you need a loan to make certain major purchases,
such as a car, a truck, a boat, appliances, furniture, etc.
The loan can be through the company selling the goods or an outside financial institution
such as a bank. When you apply for this type of loan, the lender may want you to
buy an insurance policy that protects the lender’s investment.
There may be good reasons for buying or not buying a policy.
For example, you might decide not to buy if you already have life insurance in a
sufficient amount to pay back the loan if you die before the money is repaid.
But the choice is yours. Insurance that covers such a loan is known as
credit life/credit disability. Some policies cover only life, some cover only disabilities,
and others cover both. Credit disability is often called credit accident and health insurance.
Credit life insurance = decreasing term insurance
Credit life is similar to a special type of life insurance called “decreasing term” insurance.
A credit life policy is issued for an amount equal to how much you owe.
As your loan balance decreases, so does the face amount of the credit life policy.
If you die before the loan is fully repaid, the policy pays the lender an amount
equal to what you still owe at that time.
Consumer Tip: Younger people usually can buy decreasing term life insurance for much less
than a credit life policy costs. The decreasing term policy will meet the lender’s
requirement for protection on the loan. As you get older, the cost of buying regular
life insurance rises. However, in most cases, it is very expensive to buy a small credit life
policy as a substitute for regular life insurance protection. Credit disability insurance
Credit disability is a health insurance policy. It makes payments to your lender if you
become sick or disabled and are unable to work. There may be a limit on the number
of payments or the total dollar amount the policy will pay. Credit disability normally is
more expensive than credit life insurance. You may be eligible for some type of disability
coverage through your employer. Find out if you qualify before buying credit disability insurance.
You may not need it. What does credit insurance cover and who is protected?
Credit life and credit disability pay on your loan if you die or cannot work due to becoming disabled.
• Credit life pays the remainder of your loan in the event you die before the loan is repaid.
• Credit disability makes payments if you become sick or disabled and are unable to work.
The two types of credit insurance policies protect both you and the lender.
• You are protected from losing your savings or other property if
you cannot repay the loan due to death or a disabling accident or illness.
• The lender is protected from losing the money you borrowed.
But see what is happening here ..
Read / View PDF File
