Debt Insurance is a product that allows a person to carry an amount of insurance that will take care of existing debt or unsuspected debt. In the following let’s look at what and how you would go about purchasing this very valuable product to take care of your family's needs upon your death, disability and possibly being out of work.
The very first thing you want to do is to gather all the information on debt that you owe, for example: credit cards that you owe on, a car that still has a balance, your home that you still owe to the bank. You will want to look at all the existing monies you owe. The second thing is to look at what debt may be like in the event you should experience loss of life, disability or even out of work.
You have gotten your information together and now realize you have the information, but where and who can help insure your debt? There are several entities you can look at.
Insurance companies carry debt insurance. Credit card companies also carry a form of debt insurance to pay off what you may owe them when there is an accidental death, disability or loss or work, so contacting them directly is one way to take care of a solitary debt.
Decide whether you want to cover a portion such as the credit cards of mortgage or car then many times your lender has this insurance available.
The most popular is debt insurance from an insurance company to cover the whole amount. The insurance normally goes down as the debt amount declines.
You have made your decision to have your entire debt covered, you have contacted an insurance carrier that handles debt insurance which could be your home and auto carrier or a life insurance agent. You set an appointment and explain what coverage you need and what amount of cost for the coverage you can afford and the agent or representative will give you the recommendations.
The agent will then have you fill out an application in regards to your health, financial condition and reason for the purchase and it will be sent up for approval. Once the policy is approved you will then have protection for normally a given period of time or when the debt ceases and your coverage and payment will cease as well.