J.T. Miller Company Blog
Are your customers wondering if they need Credit Life Insurance? J.T. Miller Company has the top three reasons why they should!
8/2/2011 12:15:00 AM
According to the New York State Insurance Department, there are many reasons why creditor protection is vital for your clients. To show your customers how much you care, the following information lists why credit insurance is so important:
1. Should I buy credit insurance?
Before purchasing credit insurance, you should consider the following:
o Do I have other insurance or other assets, such as savings, that would cover my debts in the event of my death, disability or unemployment?
o Will the credit insurance cover the full term of the loan and the entire balance?
o How long do I have to wait before my monthly benefit is paid if I become disabled or lose my job?
o What conditions are not covered by the policy?
o Can the terms of the policy be changed without my consent? Can the premium rate be increased?
2. Where can I purchase credit insurance?
Although you can obtain credit insurance as an individual, in most cases, a group policy is sold to a lender such as a bank, finance company, credit union, or a vendor such as an auto dealer or a furniture store. When you borrow from a lender that has a group policy, the lender may offer the credit insurance as an additional service. If your application for insurance is approved, you will be given a certificate of insurance, which describes your coverage and serves as proof of insurance.
3. How do I pay for credit insurance?
There are two primary ways to pay for credit insurance:
Single Premium: The premium is generally added to your loan amount and included in the amount financed. This increases the amount borrowed as well as the amount of interest you will pay. Single premium insurance is only available for closed-end loans.
Monthly Premium: For closed and open-end loans, your monthly premium is calculated by multiplying the outstanding balance in your account on the account’s monthly billing date by the premium rate or by multiplying the average of the daily loan balances during the previous month by the premium rate.
Some agencies will trick you into buying insurance you don’t necessarily need. However, at J.T. Miller Company, we aren’t playing games. We will do whatever we can to protect your financial institution with our credit life insurance.
Credit life insurance pays off the loan in the event of the death of the borrower. It protects a borrower's dependents and benefits your financial institution. This is because a credit life insurance policy’s beneficiary is the creditor, not the insured’s family.
Some features of our credit life insurance plan include: Covers your borrowers immediately, valid for the whole loan contract period or outstanding period or until a disablement, death or dread disease claim is made and paid out, and pays lenders the outstanding capital on a short or long term debt.
Our policy can adapt seamlessly to your borrowers’ specific debt. This policy is a convenient life insurance product that covers an outstanding debt and alleviates a great deal of the tension of managing one’s finances. So as you service your customers with respect and honesty, let us protect your financial institution with the best credit life insurance in Minnesota!
1. Should I buy credit insurance?
Before purchasing credit insurance, you should consider the following:
o Do I have other insurance or other assets, such as savings, that would cover my debts in the event of my death, disability or unemployment?
o Will the credit insurance cover the full term of the loan and the entire balance?
o How long do I have to wait before my monthly benefit is paid if I become disabled or lose my job?
o What conditions are not covered by the policy?
o Can the terms of the policy be changed without my consent? Can the premium rate be increased?
2. Where can I purchase credit insurance?
Although you can obtain credit insurance as an individual, in most cases, a group policy is sold to a lender such as a bank, finance company, credit union, or a vendor such as an auto dealer or a furniture store. When you borrow from a lender that has a group policy, the lender may offer the credit insurance as an additional service. If your application for insurance is approved, you will be given a certificate of insurance, which describes your coverage and serves as proof of insurance.
3. How do I pay for credit insurance?
There are two primary ways to pay for credit insurance:
Single Premium: The premium is generally added to your loan amount and included in the amount financed. This increases the amount borrowed as well as the amount of interest you will pay. Single premium insurance is only available for closed-end loans.
Monthly Premium: For closed and open-end loans, your monthly premium is calculated by multiplying the outstanding balance in your account on the account’s monthly billing date by the premium rate or by multiplying the average of the daily loan balances during the previous month by the premium rate.
Some agencies will trick you into buying insurance you don’t necessarily need. However, at J.T. Miller Company, we aren’t playing games. We will do whatever we can to protect your financial institution with our credit life insurance.
Credit life insurance pays off the loan in the event of the death of the borrower. It protects a borrower's dependents and benefits your financial institution. This is because a credit life insurance policy’s beneficiary is the creditor, not the insured’s family.
Some features of our credit life insurance plan include: Covers your borrowers immediately, valid for the whole loan contract period or outstanding period or until a disablement, death or dread disease claim is made and paid out, and pays lenders the outstanding capital on a short or long term debt.
Our policy can adapt seamlessly to your borrowers’ specific debt. This policy is a convenient life insurance product that covers an outstanding debt and alleviates a great deal of the tension of managing one’s finances. So as you service your customers with respect and honesty, let us protect your financial institution with the best credit life insurance in Minnesota!
