Credit Insurance Delivers Peace of Mind
Every year, millions of U.S. households protect their family finances with credit insurance.
Many Households are Underinsured and Exposed
- Almost 50% of American households say an unforeseen $400 expense would be challenging to handle (pay off in the same month)
- More than 50% of consumers say they would have immediate or near immediate trouble paying living expenses if their primary wage earner died
- Seven out of ten working Americans understand the importance of disability insurance, yet only one-third have coverage
- The average worker faces a 3 in 10 chance of suffering a job loss lasting 90 days or more due to a disability
Credit Insurance Delivers on Consumer Need Areas
- Credit insurance provides valuable protection to a borrower in the event of death, disability and involuntary unemployment
- The death benefit pays the outstanding loan balance
- The disability benefit pays monthly loan payments while the borrower is disabled
- The involuntary unemployment benefit pays up to six to twelve monthly loan payments while the borrower is involuntarily unemployed
It’s Easy to Get Just What You Need
Contrary to individually underwritten life, disability and property insurance products, credit insurance is:
- Scaled — you purchase an amount of coverage scaled to your needs by protecting only the loan(s) for which you desire coverage.
- Simplified – You can buy one simple version of the product without additional complex features such as investment options and/or riders.
- Equitable – You get the same coverage features as everybody else, no matter your health history, occupation, age, driving record and wellness habits.
- Highly Accessible – You can usually just need to sign an application at the lender or auto dealer to get coverage; with minimal underwriting, protection is very easy to obtain.
It Helps Stabilize Your Finances
- Per FICO, 90 days delinquent on a loan equates to a credit score drop anywhere from 60 to 90 points, depending on your credit score at the time of the occurrence.
- Simply from remaining in the same credit tier – that is, not missing payments and dropping to the next tier — can save you money on any future loan.
- Credit insurance helps you make payments, thus stay current on your loans, thus helps you maintain your credit tier.
- In 2014, over $2.5 billion in claims were paid to households protected by credit insurance, debt protection and other protection products
Consumers Feel Good About Buying Credit Insurance
Research over more than three decades show that consumers favorably view the products and would buy them again:
- Almost 85 percent of consumers who had purchased the products felt the products were a “good idea”
- Over 70 percent of purchasers would purchase the products again