Before saying “yes” to a loan
December 5th, 2012 by admin
If you are considering taking out a loan to buy a home, a new car, start your own business, or some other costly venture, be sure to see us before signing on the dotted line; even acting as a cosigner could have important insurance implications. Our expertise could help you avoid costly mistakes and keep your insurance options open.
We can advise you on the best coverage. In New Jersey, some financial instiutions are licensed to sell insurance products. As your insurance adviser, we can help you get the best coverage for your purchase and can help you stay clear of pressure from leaders to buy their insurance policies.
Can a bank force me to purchase its insurance?
In order to get a grant for a large purchase, such as a home, lenders require proof of insurance. However, under state law, financial institutions cannot require their customers to purchase insurance from any particular producer or insurance company. In fact, lenders are required to notify borrowers of their right to purchase insurance through independent sources.
For answers to more loan insurance questions, such as handling fees, required amounts, and tie in sales, please always call us first.