What is credit life insurance on a car loan?

"My credit union is offering a lower interest rate but with higher monthly payments.

The loan office said this is because of a credit life insurance policy.

Is this credit life insurance policy worth the extra money?"

“Unless you need this type of life insurance coverage for death, dismemberment, and injury (that usually only pays out a max of $10,000), it probably isn’t worth it.
However, few credit unions require you to take this coverage. If possible, ask if they can remove the coverage before you get the loan.
If they won’t drop the credit life insurance, go somewhere else.”
Eric Schad
Answered on Jun 10, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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