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How Loan Insurance Can Catch Life’s Curveballs

Blog Post
2 min read
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Borrowing money is often necessary to achieve financial goals. But what happens if life takes an unexpected turn, leaving loved ones with the burden of your outstanding debts? This is where loan life insurance can step up to the plate and provide needed relief.

What is Loan Life Insurance?

Loan life insurance is a type of insurance policy designed to provide financial support to loved ones in the event of your passing. Outstanding credit card or loan balances can be paid off, so your family is not left with the added stress of repaying your debts during an already difficult time.

How Loan Life Insurance Works

When an unexpected death occurs, policy beneficiaries can file a claim so that the outstanding balances on credit cards or loans of the deceased are paid in full. Some lenders offer this type of insurance as an optional add-on, making it convenient to obtain coverage. For example, SAFE members can apply TruStage™ Protected Loan Life Insurance coverage to new and existing SAFE loans.

Premium payments are typically added to your monthly credit card or loan statement, making it simple to budget for this added protection.

Selecting a Policy

When considering loan life insurance, carefully review policy details. Understand coverage amounts, age restrictions, and the terms and conditions of the policy. It's also important to ensure that the coverage amount aligns with your outstanding credit card or loan balances to adequately safeguard your loved ones.

Other Considerations

While loan life insurance is an excellent safety net, it should not be viewed as a substitute for essential financial planning tools, such as traditional life insurance, emergency savings, and a well-crafted budget. This coverage is designed to support, not replace, other financial strategies that protect you and your family.

Life is full of surprises. Don’t let the burden of outstanding debt be one of them. Call 1-800-763-8600 to speak with a SAFE representative and learn more or to add insurance to your existing loan.