Injury, illness and death are an unfortunate reality that often cannot be avoided, however there are ways as a dealer that you can protect your assets from being affected by these circumstances. Payment protection insurance, such as credit life and credit disability, enable the consumer the ability to cover the repayment of loans in the event of death, illness, disability, job loss, and other circumstances that may prevent them from earning an income.

There are a few ways that these credit life and disability premiums can be added to the account. The premiums may be applied on a monthly basis towards the base payment or the full premium may be included in the initial contract as a part of the amount financed at signing. If the premium is added to the contract at point of sale it will accrue additional interest at the same APR being charged for the original amount borrowed, which then increases the total cost of the policy to the customer. This will be up to you to decide on the best method of collecting the premiums from your customers.

It may be wise to ask your fellow 20 group members if they offer a payment protection program and if so what carrier they would recommend.