What is Credit Disability Insurance?
A type of insurance, also known as accident and health insurance, that makes payments on the loan if you become ill or injured and cannot work. This is optional coverage. When purchased, the cost of the policy is often added to the principal amount of the loan. Lenders must disclose the terms and costs of obtaining the insurance since it can affect the terms of the loan. Some policies combine Credit Life and Credit Disability into one policy and may contain provisions for cancellation of the policy.
Credit disability insurance, also known as accident and health insurance, makes payments on the loan for a limited amount of time if you become ill or injured and cannot work. This optional coverage is available to purchase at the time you complete the financing arrangements for your boat. When purchased, the cost of the policy is typically added to the principal amount of the loan. Your dealer will provide your information about the terms and costs of obtaining the insurance as it may affect the terms of the loan. Some policies combine Credit Life insurance and Credit Disability insurance into one policy.
