Buying credit life insurance
Credit life and disability insurance is used to pay off a debt after you pass on or have lost some parts (dismemberment).
Disadvantages:
- The total cost may add up to hundreds of dollars
- The lender gets the insurance money when you die
- Nothing goes to your estate, while you paid the premiums
- Some consider it gouging for what you get
- The premium usually financed on top of your loan amount
- Usually not explained to the borrower
- The rates are high for what you get
- Usually a maximum term of around 48 months
- Won't insure folks over 65-70 (those most likely to use it)
- Can't comparison-shop
Guaranteed Issue
Burial Plans
Credit Life
Whole Life
Universal Life
Second To Die
Accidental Death
Kids Insurance?
Whole or Term? Health Problems?
Lower Premiums Insurance Needs
Replacement
Ratings |
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