Sometimes, when we offer products and services, we forget the little things….what “really counts”, so it’s worth going back and reflecting how important Payment Protection is for your borrower:
FACTS:
- Credit Insurance works in conjunction with your borrower’s other life and disability insurance
- Payment Protection is designed to protect the borrower’s loan and loan payment in the event of death, injury or illness
- Payment Protection is a valuable service provided by your financial institution to the borrower and for their loan
- Payment Protection protects:
- Loan or loan payment
- Credit rating
- Collateral
- Reduces collection costs
FEATURES:
- Coverage is tied directly to the loan
- Cost is the same for all borrowers
- Premium is based on the amount financed and term
- Convenient to purchase
- No physical required
BENEFITS:
- Reduces stress on the family during a difficult time or in time of need
- Family is able to maintain their lifestyle
- Pays in addition to other insurances
- Credit rating and collateral remain intact
- Peace of mind for pennies a day
STATISTICS:
- We should have 8-10 times our annual salary in life insurance
- 76% of Americans own less than $25,000 in life insurance
- 1 in 4 widows will spend their entire life insurance benefit within 60 days….or less
- A death occurs every 5 minutes
- 80% of Americans would exhaust their entire savings within 2 months without the ability to earn an income
- 50% of foreclosures are a direct result of a disability
- 63% of workers have no short term disability coverage
- 1 in 3 Americans between the ages of 25-65 will be disabled for a minimum of 90 days
Don’t make the decision for your borrower. Education is key…..and helping your borrower identify with how Payment Protection gives them the information necessary to make a good financial decision. Discuss what “Really Counts” and let them decide!