What Is Creditor Life Insurance?
A creditor life insurance policy is one that is designed to pay the remainder of a loan in the event that you become diagnosed with an illness, become disabled, or pass away. The idea is that if a person passes away before the balance is repaid in its entirety, the insurance will remove this added burden from your family or beneficiaries.
Your creditor life insurance policy’s face value changes proportionally with your loan as it is paid out over time. In other words, the monetary amount in the policy will be equivalent to the outstanding balance on the loan or mortgage.
Creditor life insurance is available alongside a vast range of loans and options. Your representative at Today's Mortgage Choice would be happy to show you through your coverage possibilities.
What Are the Advantages of a Creditor Life Insurance Plan?
A creditor life insurance policy provides added peace of mind, making it easier to plan for the future. Regardless of what the future brings, you are assured that your credit and loved ones will be safe and protected.
Creditor protection insurance will handle any debt or remaining balance on your loan or mortgage.
What Are My Options for Creditor Life Insurance?
Your options are extensive and depend on the type of loan you are taking out. Lenders most typically distribute creditor life insurance when closing a mortgage. However, it is also available for car loans, lines of credit, and other forms of borrowing.
You can choose from a number of different policies and lenders. When you meet with your broker, we will help you select the coverage options that best suit your financial needs––plan for the future with confidence and benefit from a creditor protection plan.
What Is the Difference Between Creditor Life and Term Life Insurance?
The two are common and similar options for insurance policies. The primary difference between creditor life and term life insurance is that creditor life insurance decreases in value over time. Term life insurance, on the other hand, does not decrease in value over the course of the policy term. Another difference is that creditor life premiums are applied to your mortgage or loan payments, whereas with life insurance, your payments are made to the insurance company.
Find out which policy makes sense for you with the assistance of our brokers. We will offer advice and guidance to help you choose the more cost-effective policy.
TMC Wealth Insurance Brokers Can Help
If you are considering your options for insurance plans, TMC Wealth can assist in many ways. We can browse various lenders and policies, locating plans that are suited to the loan in question.
You can count on our experienced, qualified staff and our wide range of expertise to help you make the best financial decision. We are familiar with all aspects of mortgages and insurance proceedings and work with your best interests at heart.
Reach out to us today to learn more or to schedule a consultation.