To stay afloat in today’s tough economy, millions of people are taking on more and more debt to pay for such items as home mortgages, car loans, college education, or credit cards.
If you died unexpectedly, leaving your debts unpaid, your family would be left owing thousands or tens of thousands of dollars — unless you’ve taken out Credit Life insurance. In this traumatic situation for your loved ones, the financial peace of mind that Credit Life coverage provides can be invaluable.
Here’s how it works: You take out insurance on your life, naming a creditor as the beneficiary (for convenience, the policy premium can be added to your loan payments). On your death, the creditor will receive the balance of the debt or the maximum coverage under the policy, whichever is less. This will protect your heirs by eliminating, or reducing, the burden of debt on your estate.
As with Term Life insurance policies, Credit Life can be written to pay the beneficiary (creditor) if you suffer a critical illness, job loss, or disability that leaves you unable to meet the debt.
To be eligible for coverage, you must be:
- Employed full time
- The only person on the loan
- Below a maximum age set by the insurance company
For more information on the invaluable “peace of mind” financial protection that Credit Life can offer, please get in touch with us.