Happy family

If you are like most consumers, you probably shop around for the best value and avoid unnecessary expenses.  So if you’re borrowing money, the last thing you want is to pay extra each month for credit insurance, right? Think again.

Credit insurance purchased through your financial institution is an affordable way to get protection from financial uncertainties should you become unable to repay your loan.

If you plan to borrow money, ask yourself the following questions about your need for Payment Protection:

  • If you became unable to make your loan payments, would your spouse be able to do so without compromising your family’s lifestyle?
  • Which monthly obligation would be easier to meet: $370 when you’re healthy and working, or $345 (i.e., the cost of the payment without coverage) if you became unable to work?
  • Do you have adequate savings and/or insurance to cover current obligations such as mortgage payments or education expenses in the event of your death?

The last question is critical – 67% of workers in the private sector have no long-term disability income insurance.1

The experts are not in agreement about how much life insurance is enough; it’s difficult to apply a rule-of-thumb because the amount of life insurance you need depends on factors such as your other sources of income, how many dependents you have, your debts and your lifestyle. Remember that the sole purpose of life insurance is to replace your income in case you die, so that your family can maintain their current lifestyle.

Be Smart – Talk to your financial representative today about how you can protect your family!

1) Bureau of Labor Statistics, 2012

Payment Protection is credit insurance and is underwritten and administered by American National Insurance Company (Home Office – Galveston, TX) Exclusions, limitations and terms of availability apply to this coverage. For cost and complete details, contact your loan officer.