Credit Life Insurance Augusta Georgia GA
Reader’s Question:
Some people I know say that if I borrow money from a bank in Augusta Georgia GA, I would be required to have credit life insurance. If this is true, what is credit life insurance for?
Derek
Augusta, GA
It’s a standard practice among banks and other companies that lend money in Augusta Georgia GA to require their clients to buy credit life insurance. In fact credit life insurance is required by money lenders not only in the US but also in many other countries.
Credit life insurance is typically a term insurance policy for an amount equivalent to the principal amount of your loan for a period not exceeding the term of the loan. The phrase “credit life insurance” arises from the fact that the creditor (in your case, the bank in Augusta Georgia GA) is either the direct beneficiary of the life insurance policy or is made a beneficiary through a legal process called “assignment”.
In case you die unexpectedly before your loan is fully paid, the life insurance company pays the proceeds of your life insurance policy to your creditor, and your loan becomes fully paid. Thus, your bank is assured of collecting the amount lent to you even after you’re gone. On the other hand, this relieves your family from the burden of having to look money to pay your debt.
Consult a life insurance professional in Augusta Georgia GA for more details. You can check out life insurance prices by filling in the form found on this page.
Tags: life insurance leads, life insurance online, life insurance options, life insurance quotes, credit life insurance
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