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Dial Dunkin and Associates Harlingen Texas

Credit-Life-Header

Credit Life

Credit Insurance Products

About Credit Life Insurance

Credit life insurance is sold in conjunction with a debt. In case of an untimely death, credit life insurance will pay off the scheduled remaining balance of the loan.

Types of debtors are single and joint.

Types of terms are decreasing or level. With a decreasing term, the initial amount of insurance shown in the schedule decreases during the term by an amount equal to the initial amount of insurance divided by the term of the coverage. Decreasing term payments can be monthly, quarterly, semi-annually or annually. With a level term, the initial amount of insurance shown in the schedule remains level for the term of the coverage.

Advantages:

  • Pays in addition to any other insurance the customer has
  • Coverage begins immediately
  • Pays benefit directly to the lender
  • Helps protect the family’s credit rating
  • Premiums are included in the customer’s monthly loan payment
  • Amount of coverage is tailored to the amount financed

Types of Eligible Loans:

  • Consumer Loans
  • Commercial Loans
  • Agriculture Loans
  • Balloon Loans
  • Home Improvement
  • Home Equity

Types of Ineligible Loans:

  • Loans to Corporations*
    ( * you can insure a guarantor of a corporation)

Eligibility

You are AUTHORIZED to issue a policy when:

  1. The debtor is KNOWN TO BE IN GOOD HEALTH.
  2. The debtor is not listed in the name of a corporation. ONLY INDIVIDUALS are insurable.
  3. The debtor is at least 18 but not more than 70 years of age on the effective date.
  4. The term of coverage does not extend beyond the debtor’s 71st birthday.
GROSS DECREASING LIFE
Age
Maximum Term
Maximum Insurance Amount**
18-65
120 Months
$100,000
66-70
48 Months
$5,000
 
or to 71st birthday
 
 
NET BALANCE TERM LIFE
Age
Maximum Term
Maximum Insurance Amount**
18-65
120 Months
$100,000
 
180 Months
$50,000
 
(available for real estate loans)
 
66-70
48 Months
$5,000
 
or to 71st birthday
 
 
LEVEL TERM
A. BALLOON NOTES (Written in conjunction with Decreasing Term Life)
Age
Maximum Term
Maximum Insurance Amount**
18-65
60 Months
$100,000
66-70
48 Months
$5,000
 
or to 71st birthday
 
 
B. SINGLE PAY NOTES
Age
Maximum Term
Maximum Insurance Amount**
18-65
12 Months
$100,000
66-70
12 Months
$5,000

EXCEPTION: High blood pressure (hypertension) OR Diabetes Type II. The policy will be accepted if the following conditions are met:

  1. Applicant is age 65 or younger
  2. Amount of insurance is under $50,000
  3. High blood pressure (hypertension) must be controlled with one medication and/or a diuretic (fluid pill). High blood pressure must be circled, and the medication with the dosage must be listed in the detail section of the application.
  4. Diabetes Type II must be controlled with one medication and/or by diet and exercise. Diabetes must be circled on the application, and Diabetes Type II must be written in the detail section provided along with the medication and dosage.
  5. An applicant with both high blood pressure AND Diabetes Type II will not be accepted.

Why should you buy or sell credit life insurance?

American National policies are supported in most loan origination systems. If your loan origination system does not support these policies contact us for assistance.