Life Protection is an asset management plan. In the event of untimely death, whether natural or accidental, the remaining loan or lease balance of the vehicle is paid off in full leaving family members with the uninterrupted use of the vehicle without having to pay it off. By including Life Protection in the finance or lease agreement, three situations are avoided upon an untimely death:
- The remaining family members having to pay off the vehicle
- The remaining family members having to find a suitable individual to take over the balance of payments of the vehicle. (This individual must be suitable to the bank or lessor as well)
- The remaining family members having to return the vehicle in a negative equity or repossession situation
Policies are available for the vehicle buyer, co-buyer, or both. In the event of policy holder dying, the loan or lease balance is paid in full leaving the vehicle to the estate as an asset and not a liability. Surviving members of the family do not have to dip into personal savings or a life insurance pay-out. Life protection works just like home mortgage insurance.