Should I buy credit life insurance if I'm borrowing money for a new truck?

Credit life insurance is typically more expensive than traditional life products. One reason is that all borrowers are eligible. There are no health questions or medical exams. Specific credit life insurance rates depend on the size o the loan, type of policy, and type of credit.

Evaluate your financial assets and current life insurance portfolio before committing to credit life coverage. Explore permanent and term life options as these policies protect dependents financially. Credit life is an option worth considering, especially if health issues make it difficult to obtain traditional life insurance.

If you decide to proceed with credit life insurance, find out if the premium will be added to your loan or if you will receive a separate monthly bill. In addition, ask if the credit life policy covers the loan's full term and the entire loan balance. Also, check cancellation terms and be certain the credit life company is financially secure and licensed to operate in Illinois. Insurers not licensed in this state are not subject to Illinois' laws and regulations.