Reasons To Buy Credit Life/ Disability Insurance

Credit life/disability insurance is insurance you purchase that will pay off your loans if you become unemployable due to certain kinds of illnesses or because you become disabled and unable to work. It also provides protection if you die unexpectedly and still have unpaid debt.

This insurance is ideal if you have a home or automobile on which you are making payments or if you have several loans that would go unpaid if you were unable to work. To determine if you need credit insurance, you should analyze your financial health. If your spouse or family would be unable to pay the debt if you were unemployed, disabled, or died, credit insurance can provide adequate coverage to ensure your spouse or children do not lose your property to debt collectors.

Protect Your Property

While credit insurance may seem like something you don't need right now, it can be essential to your financial well being, especially in a tough economy, where you are more likely to acquire debt. If you become disabled or seriously ill and cannot work, credit insurance will make the loan payments for you so that you don't lose your property. The cost of credit insurance is relatively low, and is typically based on the amount of coverage you need (the premium is usually calculated per $1000 of debt covered). If you die, the insurance will pay off the balance of the loan, making it possible for your family to continue to enjoy the property and not lose it.

Protect Your Credit Rating

If you were to become disabled and be unable to pay your debt, your credit rating would be devastated, causing a long-term affect on your future buying power. By obtaining credit insurance, you not only protect your property and buy peace of mind, but you also protect your credit score from being adversely affected if you are unable to work for a given period of time.

Convenient Payment Options

In many cases, your credit life and disability insurance can be added to the loan payment for the property or debt being insured. It can also be purchased as part of an overall life insurance package. Talk to your insurance agent about what policy best meets your needs.

Exclusions and Limitations

As with every insurance policy, there are exclusions and limitations. In most cases you must meet specific age requirements to qualify for coverage. Only certain disabilities are covered.  Be sure to carefully read your policy before agreeing to the terms to make sure the policy adequately meets your needs.

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