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Why Opt for Credit Insurance?

March 17, 2023

Added Protection For Life’s Tribulations

Credit insurance can help protect your debts by covering your monthly loan payments if you become unemployed or disabled, or by paying all or part of your loan if you become deceased. First Source offers a variety of credit protection as an optional backup plan for your credit obligations.

  1. Accidental Death & Dismemberment Insurance (AD&D) - AD&D provides coverage for fatal and nonfatal accidents involving dismemberment or loss of eyesight or hearing. With most policies, benefits are paid in addition to life insurance or other coverage you may have, and surviving beneficiaries may use the money however they wish.

  2. Credit Life Insurance - An inexpensive insurance designed to pay off all or some of an outstanding loan balance if a member dies before his or her loan is repaid. Credit life policies are not only available on car loans but for most consumer loans as well.

  3. Credit Disability Insurance - This is a low-cost insurance coverage that will reduce or pay off a member’s insurable loan balance if the member becomes disabled due to a medically determined sickness or injury.

  4. Guaranteed Asset Protection (GAP) - GAP covers the difference between what you owe on a vehicle and what it’s worth if your car is totaled, less your deductible. Qualified collateral of any model year can have GAP, excluding vehicles with a salvaged, junk, or reconstructed title.

  5. Mechanical Breakdown Protection (MBP) - A service contract providing coverage in the event of failure of covered automotive parts and associated labor costs. This service is meant to protect you after your manufacturer’s warranty has expired or cover additional services that manufacturer’s warranties do not. MBP is becoming even more critical as people are keeping cars longer and driving more miles. MBP can be placed on any car regardless of whether the loan is financed or paid off.

Some of these options are free to you, and insurance with costs can be rolled into your monthly loan payment, making the coverage even more affordable. First Source also offers a variety of insurance coverage for recreational loans and for business loans. You can find more details about our insurance options here.

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