Selling Loan Protection
F&I producers often find it a difficult, if not impossible, task to present the benefits of credit insurance at the time of closing a loan. The customer is alive and healthy enough to be in front of the sales business manager to sign the loan documents. It is a rare customer in these circumstances who can imagine illness or injury requiring credit insurance.
The simple truth is that most of us are under insured. We neglect to update our insurance to match current liabilities. Most of us believe we will get around to evaluating our insurance needs later — when we have more time, more money, or more possessions. “Later” seldom comes until illness and death meet us head on.
Credit insurance is a tailor-made policy that safeguards a customer’s good credit in the even[t] of untimely illness, death or injury. It pays in addition to other benefits the insured may have through an employer or other provider.
According to the Bureau of National Statistics, 97 % of Americans’ only source of income is their ability to work. If the new loan payment they are incurring would be a burden to their family during a period of illness or injury, this protection could come in handy. After all, no debt should out-live its maker!
One of our former F&I students recently revealed that she no longer presents credit life and disability insurance products to her customers. Instead, she shares a plan to protect new loans in the event a customer cannot make the payments due to injury or illness. She describes coverage that will also provide a lien-free title for a loved one if the customer meets St. Peter before the loan term is up. This sales business manager offers her customers loan protection and so can you.
Keep your explanation of credit insurance simple and consistent. Keep your dealership properly licensed to offer this product. Keep the rule of 100% solicitation 100% of the time to 100% of your customers who qualify for the coverage. Your clients have the right to make the choice for themselves. It is your job to make sure their choice is an informed one.
Dealer Marketing, May 2003