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Consumer Purchasing Insurance on a Single Pay Note

Question: 
Can a consumer purchase credit life and disability insurance on a single pay note?
Answer: 

Answer by Dan Persfull: That will depend on the insurance company that you have contracted with to underwrite your credit insurance.

Check your contract and/or contact the insurance company.

Answer: 

Answer by David Dickinson : Only if a lender is willing to offer it. When you consider the tiny premium that results from the short term of most SP notes, there's almost no profit potential for a lender. Considering the cost of gearing up for and managing this new type of product offering, the case for getting into this business is very weak.

First published on BankersOnline.com 3/27/06

First published on 03/27/2006

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