Credit life insurance is a close relative of mortgage life insurance. It is a form of insurance that will most often be bought by those borrowing to cover the amount that is being loaned. It ensures that the in the event of death, the remaining loan balance can be paid off in full. It can be purchased with a number of loans, such as car loans or mortgages.
Is It A Good Idea?
Like all life insurance products, it depends on a number of factors. Quite often credit life insurance is purchased as an add on when taking on a loan. It is important that you understand the fine print before you sign the dotted line. Often credit life insurance plans don't even cover pre-existing medical conditions, nor do they cover past the age of 70. Although some credit life insurance policies may offer genuinely good coverage at a fair price, some can't be interpreted as anything but cash grabs being pushed by commissioned salespeople. For many people who have never purchased term life insurance, or are unfamiliar with how affordable premiums are for significant coverage, the added cost of credit life insurance may seem like a good bargain. That's why, as with all financial products, it is recommended to either do your homework or speak to an impartial professional broker. If being covered for a loan is your sole intention for buying credit life insurance, then the chances are good that you can do that, plus a whole lot more with a comparable term life insurance policy.
The one thing to remember is that if you are taking a loan of a considerable amount, then it is definitely recommended you do your homework. Speaking with a professional broker can be a huge asset when it comes to getting appropriate coverage for your needs.Get a free comparison quote today and see what so many Canadians have already discovered with Solutions Financial