Credit Life Insurance - PowerPoint PPT Presentation

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Credit Life Insurance

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  1. Credit Life Insurance www.BeamaLife.com | 1-866-972-3262

  2. Credit Life Insurance • Credit Life Insurance • When you're borrowing money to buy a car or applying for a credit card, it's likely that you'll be asked to purchase credit life insurance. Credit life insurance pays off the balance of your loan or line of credit upon your death. But is it a good deal? www.BeamaLife.com | 1-866-972-3262

  3. Credit Life Insurance • For most people, the answer is no. Although credit life insurance pays off your loan or line of credit balance when you die, it's usually better to purchase term life insurance. Here's why. www.BeamaLife.com | 1-866-972-3262

  4. Credit Life Insurance • Credit life insurance is usually much more expensive than term life insurance • In some states, you'll pay less for credit life insurance than in others, because each state sets its own limits on the amount that insurers can charge. But credit life insurance will always cost more than an equivalent amount of term protection. www.BeamaLife.com | 1-866-972-3262

  5. Credit Life Insurance • Credit life insurance offers less protection to your loved ones than term life insurance • When you purchase credit life insurance, your aim is probably to protect your loved ones from the burden of the debt you are leaving behind. However, your family may have other, more pressing financial obligations at your death than the full repayment of that loan. www.BeamaLife.com | 1-866-972-3262

  6. Credit Life Insurance • When you buy credit life insurance, the named beneficiary of your credit life insurance policy is your lender. When you die, your loved ones don't get the proceeds of your credit life insurance policy--the bank or other lending institution does. www.BeamaLife.com | 1-866-972-3262

  7. Credit Life Insurance • By comparison, term life insurance is much more flexible. When you die, your term policy will pay out directly to the beneficiaries you have named in your policy. They can use that money for whatever they choose, including paying off your loan or line of credit balance. www.BeamaLife.com | 1-866-972-3262

  8. Credit Life Insurance • Credit life insurance is optional • Credit life insurance is strictly optional--there's no law requiring you to have it. And you should be able to cancel it at any time if you decide later that you don't want it. www.BeamaLife.com | 1-866-972-3262

  9. Credit Life Insurance • Credit life insurance is profitable for lenders • One reason why lenders are eager to sell credit life insurance is because it's profitable for them to do so. For every policy they sell, they'll receive a commission. Banks and other lending institutions often reward their employees for selling credit life insurance and expect them to sell it during loan-closing proceedings. www.BeamaLife.com | 1-866-972-3262

  10. Credit Life Insurance • Lenders often add the cost of credit life insurance into your monthly payment amount before closing the loan. If you don't really want it, ask them to refigure your loan payment before you sign the paperwork. www.BeamaLife.com | 1-866-972-3262

  11. Credit Life Insurance • Credit life insurance is usually packaged with credit disability insurance • When you're offered credit life insurance, you'll usually be offered credit disability insurance as well. Credit disability insurance makes monthly payments for you when you are disabled and unable to work. • Because credit disability insurance is usually much more costly than credit life insurance, it makes credit life insurance seem like a good deal. www.BeamaLife.com | 1-866-972-3262

  12. Credit Life Insurance • This may encourage you to sign up for credit life insurance, even if you can't afford the premiums for credit disability insurance. www.BeamaLife.com | 1-866-972-3262

  13. Credit Life Insurance • When should you buy credit life insurance? • You may want to buy credit life insurance if you are unable to purchase any other form of life insurance, perhaps because you have a serious medical condition. The same is true of credit disability insurance. If you've ever suffered a disability, you may be unable to purchase an individual disability insurance policy. www.BeamaLife.com | 1-866-972-3262

  14. Credit Life Insurance • However, when you purchase credit life and disability insurance through your lender, you won't have to pass a medical exam. You're covered as long as you pay the monthly premiums, no questions asked. www.BeamaLife.com | 1-866-972-3262

  15. Credit Life Insurance www.BeamaLife.com | 1-866-972-3262