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?"

Answer provided by
avatar
Eric Schad
Answered on Jun 10, 2021
“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.”
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies