To the Editor:
Regarding “Once a giant, credit life insurance fades away” (May 3): Credit insurance continues to be a valuable product serving the basic needs of the consumer and providing fee income for a dealership’s finance and insurance office.
The most successful dealers today not only sell products designed to increase traffic into the dealership but also take into account the needs of their customers.
Protecting debt in the event of the death or disability of a car buyer is important in today’s economy, in which credit ratings govern which customers can finance a car.
Qualifying a customer to determine his or her needs for certain protection is vital for the customer and the dealer. Many consumers now live paycheck to paycheck. Claim dollars are paid directly to lenders.
Credit life and disability insurance enjoys high consumer acceptance. Thousands of dealers from coast to coast continue to sell credit insurance, protecting their customers from financial hardship while earning fee income and underwriting profits for their dealerships. Credit insurance rates are more competitive today than at any time in the past.
In a handful of states, overregulation has forced credit insurance to a less prominent position on the F&I menu, if not off the menu entirely. In response, the industry is developing products and programs to address the fundamental needs of borrowers who become burdened with repaying