Should you buy credit life?4 of 7If credit life insurance costs more than regular life insurance and is intended to benefit the lender, why would someone buy it?That's a good question, says Robert Hampton, an accountant in Fort Worth, Texas, who calls credit life insurance a "sucker's bet.""You are paying for coverage that is declining as you pay down the debt, so you are paying for less and less protection each month," Hampton says."If you're not insurable, (meaning) you're not able to buy life insurance through regular channels, it would be an option," Hampton says. Credit life won't require a medical exam, he says. Related Articles:Life insurance calculatorJust the facts on life insuranceInsurance calculatorsInsurance needs consentRelated Links:Do you need life insurance?14 bad insurance betsTerminating a term life policyPermanent insurance primer advertisement
If credit life insurance costs more than regular life insurance and is intended to benefit the lender, why would someone buy it?
That's a good question, says Robert Hampton, an accountant in Fort Worth, Texas, who calls credit life insurance a "sucker's bet."
"You are paying for coverage that is declining as you pay down the debt, so you are paying for less and less protection each month," Hampton says.
"If you're not insurable, (meaning) you're not able to buy life insurance through regular channels, it would be an option," Hampton says. Credit life won't require a medical exam, he says.
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