Although you are getting up there in years and are living off of your retirement account, you suddenly need to purchase a new big ticket item; a car. You are concerned about your heirs getting saddled with the responsibility of your new debt if you should pass before paying off the full amount of the loan. Credit insurance (also known as credit life insurance) may be the way to put your worries to rest.
If a car owner with a loan dies or becomes disabled before the debt is fulfilled, the credit insurance will come into effect.The money from the insurance will pay off the loan balance in the event that such an unfortunate situation occurs. The benefit payment goes directly to the company financing the purchase to satisfy a debt and not to the policyholder or their heirs. Credit insurance is a way for those with loans to be able to ensure their debts will be paid off and not become a financial burden.
Credit insurance has existed for 80 years. Over that time period, tens of millions of consumers have opted to carry credit insurance. Credit insurance is touted as a low-cost type of coverage to protect the assets of consumers in the event of death, property damage, loss of property, disability or involuntary unemployment.
If you work in an extremely dangerous profession, have a history of health problems or just want to protect all the assets you have worked diligently to accumulate, then credit insurance may be something to consider. Remember, credit insurance should only be purchased if you get peace of mind and are satisfied with the terms. Please talk to an insurance professional to review all your options before making a decision.