Protect Your Family with Credit Life and Disability Insurance
Friday, March 23, 2018
No one expects to lose their life suddenly or lose their job because they've become disabled. And that's especially true for younger people. But the truth is that it does happen and it's not necessarily predictable. When it does happen, you or your family might have the added stress of figuring out how to pay your auto loan -- even if you no longer have a steady income. The good news is that there are special types of insurance you can get to make sure you're covered in this situation.
What is Credit Disability & Credit Life Insurance?
Credit Disability and Credit Life Insurance is a special type of insurance that's designed to cover your loan payments if you become disabled or unemployed. It can help cover your loan payment if you become disabled or unemployed. Your lender is your beneficiary.
Do I need it?
Not every type of insurance is right for every borrower. Be sure to ask yourself some questions before you make a decision. When in doubt, you can always ask your credit union for more information.
Do you have a cosigner?
If you have a cosigner on your loan, they're responsible if you can't make payments. That means if you become disabled or lose your life, then your spouse, parent, friend, or whoever signed the loan still has to make the payments. Be sure you talk to your cosigner about Credit Disability and Credit Life Insurance. It may make them feel more comfortable knowing that they won't face an economic hardship if something should happen to you.
What responsibilities do you have at home?
Most people who get this type of insurance are concerned about making sure their family is taken care of if something happens to them. Think about who would be affected by your loan and how if you were to lose your life or become disabled. That information will help you decide whether or not this is right for you.
Do you have an emergency fund?
Experts recommend you have at least 6 months worth of expenses saved up in an emergency fund. That money is meant to pay all your bills and keep you fed if you happen to lose your job or become unable to work. If your emergency fund is big enough that you feel confident you can make your payments even if you're not working, you may not need the coverage.
How big is your loan?
Not every car loan is for a huge amount of money. If your loan is small enough that you could handle the payments even if you weren't working, you may not need the coverage.
Do you have a pre-existing condition?
Be sure to ask your lender or insurance agent what Credit Disability and Credit Life Insurance covers. While almost all of these types of policies will cover accidents, some won't cover death or disability from a pre-existing condition, like cancer.
How do I get it?
You can add this type of insurance on to your auto loan whether you finance through your car dealership or your credit union. Your credit union will also be able to talk to you more in depth about Credit Disability and Credit Life Insurance before you're ready to buy a car. That way you're prepared when the time comes.
Thinking about adding Credit Disability and Credit Life Insurance onto your auto loan? Be sure to ask us about it today.