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At Life Insurance site they provide you with knowledge you need to make the most informed choices regarding crucial aspects of life. But also allow the freedom to share your experiences and thoughts with others and learn from their insight on life insurance policies.
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Life Insurance-Best Life Insurance Published by: http://life-insurance.global/
Credit life insurance comes in three varieties...level, decreasing, and revolving. Level life insurance begins and ends with the same coverage over the term and is normally associated with single payment obligations. It is illegal in most states to sell level life insurance on installment transactions. Decreasing credit life comes in two sub-varieties...gross and net. Gross decreasing credit life begins with the "total of payments" (the principal plus all interest you will probably have to pay over the whole term of debt) and decreases by one monthly payment each month until it reaches zero at the end of the term. Net decreasing credit life starts at the "amount financed" and declines as the principal balance declines over the term.
Usually net decreasing life is enough to pay the obligation because it tracks the remaining principal, unless you fail to keep up with the payment schedule and reduce the debt accordingly. Gross decreasing life will normally be excessive at the beginning and less so as the term continues. For example, if the principal is $10,000 and there will be $4000 in finance charges on a car note over a six-year term, the insurance will start at $14,000, but during the first month the debtor in fact only owes $10,000 plus a few days interest. This means that if the debtor dies during the term the excess coverage should be paid either to the debtor's estate or to a named beneficiary. In some states creditors are limited to net decreasing life plus three or four months of payments just in case the account is in arrears at the time of death.
Auto accident deaths create a unique insurance situation where credit life is involved because the casualty insurance on the vehicle will often pay off the car note leaving the credit life insurance to be paid directly to the debtor's estate as a cash benefit. Millions of dollars of insurance benefits have been lost because the surviving spouse was unaware of the double coverage on the note. life-insurance.global
"Revolving account" credit life insurance usually involves a monthly premium computed on the basis of the outstanding balance being billed. The premium covers that amount for 30 days, discharging the obligation if death occurs before the next billing date. Unfortunately, national banks that issue credit cards have developed a scam to get around the accusation of illegally high credit life premiums. Most of them if pressed would take the position that since they are a "national" bank the states cannot limit their insurance premiums, even if the state also limits premiums charged by state banks, but this legal position stands on shaky ground.
Many have issued their own policies in the form of "debt cancellation clauses" which are amendments to credit card agreements under which the account balance will be canceled if the debtor dies. But because of the risk that some state may clamp down on their rate-setting practices they "bundle" the credit life with up to a dozen other coverages, nearly all of which are not rate-regulated, so the charges produce a very large margin of profit. what is life insurance
They won't sell credit life alone, but require an "all or none" purchase of the various components such as credit accident and sickness, involuntary unemployment coverage, unpaid family leave coverage and even such weird products as "college graduation", "having a baby", "retirement", "divorce" and other "life events", each of which results in a month or two of benefits at the minimum payment level on the account. These bundled products usually cost upward of $1.00 per $100 per month, or twelve per cent per annum on top of the existing finance charge rate. Truth in Lending does not require that additional 12% to be reflected in the annual percentage rate, however, because the coverage is deemed "voluntary" and not part of the "finance charge".
Summary: At Life Insurancesite they provide you with knowledge you need to make the most informed choices regarding crucial aspects of life. But also allow the freedom to share your experiences and thoughts with others and learn from their insight on life insurance policies. Visit this site to learn more:http://life-insurance.global/these-3-guidelines-will-get-you-ready-to-buy-the-best-life-insurance-today/
