CREDIT LIFE AND DISABILITY INSURANCE:

This coverage is pretty self explanatory: The credit life insurance that the FM will try to sell you benefits you in the event that you die before the loan is paid in full. Simply put- if you die, the insurance company will pay the balance.

This might be important if, for example, you are married and you don't want to burden your spouse (who may be on the loan with you). Or you might consider if you want the vehicle left "free and clear" to your estate or beneficiary.

If you are single and have no "estate," do you really care if your auto loan is paid in full in the event of your death?!

Disability insurance is slightly different in that it covers you when even though you are still alive.

It is more expensive than the credit life because it will make your car payments for you in the event you are disabled either by sickness or accidental injury and are unable to work.

There is usually a 15 to 30 day waiting period after filing the claim before you become eligible for the coverage, so make sure that you read the fine print. Also, make sure to divulge any pre-existing conditions. Anything that may exist beforehand (which could potentially contribute to your being disabled later) might disqualify you for their coverage. If you don't qualify WHY BUY IT.you'd be paying for nothing!

Again- just ask questions.

For additional information and quotes on credit life and accidental health and disability insurance coverage, please visit our friends:

They know their business better than we do. They'll answer questions and give you quotes if you just ask. Saving money starts with asking questions.

NOTE: You always have a choice. We can't give you advice one way or another, but if you feel you don't need it don't get it. If you feel you do need it, do get it. Just make YOUR decision for yourself (not because you feel obligated at the time of purchase or because the person pitching it seems nice and trustworthy).