Hi Guys
Did anyone take out life and disabilty insurance on their car loan? If so is the application also the policy or did a separate policy come in the mail.
Jimrb66

 

life insurance is completely different from your auto insurance.

disability is for when you can't pay for the premium due to illness or
injury.

you should check with your agent if you want to apply for life.

or are you talking about gap insurance?

 

I purchased gross decreasing term life ins. and disabilty ins. on the car loan from the honda dealer.My question is (is the application also the actual policy or does the ins. co. send a actual policy.) I live in NJ
Jimrb66

 

sounds like a question you should ask ur honda dealer, i got it thru the credit union so if i die my cars paid off and if im disabled theyll pay the payments, they gave me the info on the policy the day i got the loan

 

All, and I do mean ALL, forms of loan insurance are a total ripoff! You could go out on your own and buy way more term life insurance, or disability insurance for what the banks and credit unions charge for their paltry little policies. It's just another money maker for the dealers, banks and credit unions.

 

ahhh, now i get it. interesting coverage.

unless your family's financial status is terrible (can't pay for balance
of the loan) i wouldn't worry too much about it. the car can pay itself
pretty much and only a couple of grand to pay off on top of that.

but aside from this issue, if you have a family you should get life
insurance anyway for piece of mind.