Line of Credit- Credit Protection Insurance

[amslaw]

Hey all,

I just want to know what the consensus is on credit protection. What’s your experience? 
 

thanks in advance!

[StephenToast]

AFAIK there's isn't a point in paying for credit insurance since it's more about protecting the bank from you defaulting than the other way around. It might be worth it if you have people financially dependent on you? My bank rep at Scotia straight up told me there's no point in getting it unless you're married with children.

Edited July 20, 2021 by StephenToast

[PlayALawyerOnTV]

It's a scam. 

If you feel that you need some sort of insurance on your LOC then you're better off getting separate disability or health insurance. You'll be able to find better terms elsewhere for less money.

[Matchaholic]

2 hours ago, PlayALawyerOnTV said:

It's a scam. 

If you feel that you need some sort of insurance on your LOC then you're better off getting separate disability or health insurance. You'll be able to find better terms elsewhere for less money.

I echo this sentiment. I looked into insurance elsewhere as whatever the bank offered was predictably outrageous. If you really want insurance on the LOC, The Empire Life and some other carriers have reasonable monthly premiums for Term Life insurance.  

[AllRise]

14 hours ago, Matchaholic said:

I echo this sentiment. I looked into insurance elsewhere as whatever the bank offered was predictably outrageous. If you really want insurance on the LOC, The Empire Life and some other carriers have reasonable monthly premiums for Term Life insurance.  

This. I worked in the financial services industry for a few years, and term insurance is a very low-cost protection option (relatively speaking) for those who need to ensure they don't leave their families with debt in the event of their untimely demise. There is a little more to it than this though, as it depends on your specific legal circumstances with regards to marriage. I would advise you to speak to a financial planner outside of a bank if you would like more information; look for a planner with experience and credentials (they should have the PFP or CFP certification).