Introduction
Credit Life Insurance
Things to Know about Credit Life
Accident and Health Insurance
Things to Know About Accident and Health Insurance
Gap Insurance
Thing to Know About Gap Insurance
Introduction
Credit Life, Accident and Health Insurance, and Gap can help protect your family from the unexpected. A loan is a commitment, a promise you have expected to keep. The question becomes; what if you were to die or become sick or injured on the job, or total your vehicle, would your family be able to keep that promise? Credit life and Accident and Health Insurance give your family a convenient, affordable way to keep that repayment promise. Gap insures that in the event of a total loss from either a collision , theft or natural disaster you won’t be left with any negative equity to pay.
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Credit Life Insurance
Credit life insurance is similar to term life insurance. It is sold in conjunction with a credit transaction and is designed to pay off all or part of the borrowers’ debt in the event of their death. However, unlike term life insurance, the proceeds are paid directly to the lender, which is the named insured on the insurance policy.
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Things to Know About Credit Life Insurance
- The borrowers obligation or promise to pay is kept and the family receives an asset and not a liability.
- The co-signer is relieved of any further obligation to pay
- The families credit rating remains in tact
- Both buyer and co- buyer can be covered
- The rates are set and regulated by the State of Texas
- You may cancel your policy at any time and receive a refund
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Accident and Health Insurance
Bad things happen to good people and Accident and Health Insurance is designed to protect you from those unseen occurrences that can put mental and financial pressure on you and your family.
If you are sick or injured your expenses are going to go up and your income is going to go down. Hospitalization seldom pays 100% of the expense and does not have a provision to make your car payment. The last thing you need to be worrying about is hurting your credit because you can’t make your car payment. If you are unable to go to work because of a covered illness or injury your Accident and Health policy will make your monthly car payment.
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Things to Know About Accident and Health Insurance
- There is an age restriction. You may not be more than 70 years old during the contract period.
- You must be employed on a full time basis ( a minimum of 30 hours per week) This is only a provision if you are applying for full disability benefits coverage. Joint co-debtor is not eligible for disability coverage.
- There are pre existing restrictions which must be met. (see your provider for details)
- There is a waiting period before coverage begins
- You do not have to be hospitalized to collect
- Premium is included in your monthly payment
- There is no limit to the number of times you can collect
- Loan payments on your behalf do not have to be repaid
- Rates are set be the state and not affected by age or occupation
- You may cancel the policy and receive a refund at any time.
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Gap Insurance
Today’s world is changing and we must change with it. Gap is the newest option you have to help manage your automotive expense. Negative equity is becoming a bigger and bigger problem everyday. More and more people are upside down in their vehicles.
Just bought a new car? What if an accident occurred soon after taking your brand new vehicle off the lot? You have full coverage insurance, right? So you’re covered…maybe not!!
When you drive a new car off the lot the value of your vehicle depreciates, sometimes as much as 20%. For example, say you pay $25,000 for your new vehicle and have any accident a month later. You probably have only made, at the most, one payment and you did not put any money down so your loan amount is still close to the $25000 purchase price. Unfortunately, even with full coverage, which includes comprehensive and collision, you will only receive the market value of your vehicle. That means you may be stuck paying the depreciation on a $25,000 car, at 20%, that would be $5000! That amount could be more if you financed your taxes and license into your loan.
Gap insurance will cover the “gap” between what you owe on your vehicle and what the insurance company says the market value is and will pay.
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Things to Know About Gap Insurance
- Total losses due to collision, theft and natural disaster exceed 7 million vehicles per year
- Many primary automotive insurance carriers do not provide gap coverage
- Gap insurance limits may not exceed $75,000
- You are responsible for the difference between your payoff and the market value your insurance company pays
- More and more customers are upside down in their vehicles
- Gap protects your investment and your credit rating.
Loan Balance/Year 2: $20,000
Insurance Settlement: $16,500
Loan Deficiency (Gap): $3500
Customer Deductible: $500
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Out of Pocket w/out Gap: $4000
With Gap, Gap Pays: $4000
Out of Pocket with Gap: - 0-
