Credit Life Insurance
When you buy a new car there are many financial implications you need to take into account. One of these options is taking out a Credit Life Insurance Policy. This type of insurance provides you with specific life cover to settle all your outstanding credit contracts such as your home loan and car loan in the event of your death or permanent disablement. Please note that Credit Life Insurance does not form part of your car insurance policy as such. The people who would probably offer you credit life insurance will be the dealership where you bought the car or the bank or finance house that provides you with the finance.
You will have a choice of making monthly payments or paying an annual premium. If you choose to make monthly payments it will be added to your monthly car payment. Before you decide to take out even more insurance, after you had to take out car insurance, consider your options and if you really need it. Request to see full details of the insurance such as the benefits, waiting periods, exclusions and conditions. As with your car insurance, never just take the first option – get a number of quotes if you feel you need this type of insurance and compare the premiums and benefits.