Loan/Lease Insurance – Part 2
A Gateway to New Markets
Banks, credit institutions and leasing companies are logical candidates to provide or recommend Loan/Lease Disability Insurance to benefit their clients. The logic for such firms to concern themselves about the need for Loan/Lease Disability Insurance comes from the very statistics supplied by the loan industry.
The Federal Home Loan Bank reports that over it’s many years it has determined the major cause of mortgage loan foreclosures is disablement of the mortgagee; 48% vs. 3% due to death.
It is not uncommon for the lending firm to require life insurance as a condition to make the loan. Such insurance covers the consequences created by death (3%) and leaves abandoned the greatest hazard to loan default, disability (48%).
67% of people who suffer heart attacks, the number one killer in America, survive. Cancer survival has reached the plateau of 56%. The greatest number of disability cases involve people 30-49 years of age, with the average age being 41. Consider the published observation of Selena Maranjian, who writes in The Motley Fool, “Most of us need disability insurance, yet less that 15% have it!”