Credit Disability Insurance
Credit disability insurance will provide you with loan repayments if your customer is unable to work due to illness or injury.
Credit disability insurance, also known as accident and health insurance, makes monthly loan payments to the lender if a borrower becomes ill or injured and is unable to work. The policy holder must remain disabled for a certain number of days before a benefit is paid, however; the benefit can be retroactive to the first day of disability. In other cases, the benefit begins only after the waiting period is fulfilled. Common waiting periods are 7 days and 14 days.
When purchased, the cost of credit disability insurance is often added to the principal amount of the loan. Lenders must disclose the terms and costs of obtaining the insurance considering it can affect the loan terms. You have the option of combining credit life and credit disability insurance into one policy.
Benefits to J.T. Miller Company’s credit disability insurance
- Protects credit scores in the event of a protected illness or injury that keeps the borrower from working.
- Disability policies through employers may pay 70% or less of the borrower’s salary while they are out of work due to a long-term disability.
- At the time of disability, borrowers will need their salary to pay for living and medical expenses.
Feel free to contact J.T. Miller Company for further information on credit disability insurance or to set up a consultation. Our knowledgeable agents are ready for your call.
Contact our office at 763-512-1950 or fill out the form on this page.