Credit Life Insurance? May Not

Life Insurance

Credit Life Insurance? May Not. AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal : to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

The main aim of buying a life insurance policy is to protect your dependents from financial strife in the event of your death. Your choice of an insurance policy should therefore be economical as well as effective.
Choosing the right policy will enable you to make regular payments and ensure your dependents receive adequate coverage. Term life insurance would be worth considering if you're looking for basic life insurance coverage. Several kinds of life insurance policies, may tempt you into buying a policy you don't really need. Why you are better off not buying such a policy.

What is credit life insurance?

This is a type of insurance policy that is customized for the purpose of paying off the unpaid amounts on your credit transactions in the event of your death, the most common of which are loans, mortgages and credit card bills. It works like a decreasing term life insurance policy. Credit life policies are usually offered when you make a huge financial purchase. The premiums on this policy are added to your loan amounts.

Why you shouldn't buy a credit life insurance policy?

Credit life coverage is quite expensive compared to term insurance. Salesmen receive huge commissions for selling them to you. It doesn't require a medical test to determine your premiums, but it also doesn't cover pre-existing medical conditions. Your family doesn't receive the death benefit. Your creditor does.  If you are older you also have to be careful not to get conned into such a policy because the policy becomes null and void at the age of 70.

What you should know about credit life insurance policies