Free preview · from the dealership side of the desk
Near the end of the finance office visit, some buyers hear a softer pitch: “If something happened to you, could your family keep making this payment?” Then comes credit life, credit disability or a “payment protection” plan that covers the loan if you die, get hurt or lose your job. It sounds responsible, and it’s usually shown as a small number added to the monthly payment.
Insider truth: credit life pays the lender, not your family, and the coverage typically shrinks as the loan balance does. These products are legal and regulated, and sometimes useful, but often among the most expensive ways to buy the protection they offer. Below: what each product does, how they’re priced and sold, a worked example against alternatives, when they make sense, the terms to read first, what to do if you already bought one, and what to say.
Members read the rest · 8 more sections
In the full guide
- What each product does
- How they are priced and sold
- Worked example
- When these products can make sense
- Read these terms first
- If you already bought it
- What to say
- Your game plan
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