Life Insurance for Lines of Credit

Life Insurance for Lines of Credit

The average personal debt has gone up and to avoid high interest on credit cards, people take out lines of credit. Line of credit interest rates is generally around Prime and credit cards are at 19% and sometime even more.

There are two types of lines of credit : unsecured and secured.

A secured line of credit is backed by GICs, or the equity in your house. Secured lines of credit give you a higher limit and a lower interest rate because they lessen the risk to the bank.

Insurance is available to cover your credit line payments in the event of an injury or death. You can purchase it through the bank that you borrowed from or through an insurance company. Remember, the insurance company is truly the place where the insurance policies are made, are designed and thus offer the maximum customised benefit….and guess what, it also works out to be cheaper buying you insurance from the insurance company.

Coverage from the bank has the following shortcomings:

1. The coverage is not portable:

2. Non-smokers and smokers are priced the same,

3. Preferred rates are not available,

4. Coverage is not convertible:

5. Cash value features are not available,  

 

Created by: Aman Kapur

 

 

Our Testimonials

 

Nicole and Vincent M. ( Kitchener, ON December 2012) say about Aman:

We found Aman a very courteous and a professional person. He was willing to meet us whenever we were available and that meant working around our busy schedules. Over the years as our needs have changed, Aman was able to offer plans matching the changing needs.

Rohit S.Read what Rohit S. ( Mississauga ON. 2011) has said about Aman on Linkedin:

Aman knows his stuff. Not only does he understand the insurance industry well, but the advice I got from him was genuine and with my interests in mind. I find that kind of integrity rather refreshing. I’m certain he’ll do very well in the future. Highly recommended.

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