Life and Disability Insurance Protection
The life insurance will pay off the car in the event that you pass away during the loan period.
Disability insurance will make the payments in the event that you get injured and can't work.
For disability insurance to kick in, you usually have to be out of work anywhere between 15 to 30 days and show proof of disability through a physician's orders.
In order to qualify, you can not have an existing medical condition.
The life insurance portion is usually cheaper than disability insurance, but neither one can be negotiated because the rates are set by the state insurance commission.
If you currently have a good life insurance policy, or you're single with no assets or dependents, then you won't need the life insurance policy on the loan.
If you ARE interested, first check with your car insurance company and see if they can offer you the same products at a lower price.
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