Terms Search Tips Targeted Search by Area Website FAQs Notice of SAI Plus enforcement action. Return to Index Commissioner Jose Montemayor today cut credit life insurance rates by an average of 21 percent and credit disability insurance rates by an average of 18 percent.
Borrowers purchase credit life insurance to pay off loans if they die.
This rate cut will save millions of dollars for consumers through reduced loan payments for cars, furniture and other big-installment purchases. It also will reduce what consumers pay for credit insurance on such other indebtedness as credit card balances. This is because a single-premium policy involves payment of the full amount of the premium, up front, to the insurance company after a loan is closed. He ordered comparable decreases for other types of credit life policies. Insurers and the lenders that act as their agents must apply the discount factor to all types of single-premium policies to cut the actual premiums even further.