Quote:
Originally Posted by jeebus
WTF is going on with life insurance? They try to sell that to you with a car?
|
It's credit life and credit disability. It covers your loan in the event of death or disability. Usually grossly overpriced and benifits the financing company.
edit for clarification: the benifits are PAID to the finance company to be applied towards your loan.
The only time I would consider it is when someone cannot get insurance any other way and then there is some peace of mind benifit. I work in finance and rarely sell the insurance products unless the person requests it. I offer it, explain what it covers, and normally the person says they don;t want it and I am fine with that.
Warranties are a different beast and is up to the individual to determine if they will benifit from it according to their situation. Someone living paycheck to paycheck has different priorities than someone that has $5,000 a month left over after their bills are paid. One would laugh at a $1,000 repair bill and the other may have to file bankruptcy.
It is illegal to require the products be purchased in order to qualify for a loan. So don't fall for that line. Just a heads up for some of the younger members that may not have had a lot of experience with finance.