Credit Life Insurance: You Don't Need It
Occasionally, Consumerism Commentary readers send in questions or stories they'd like to share with a wide audience. These questions and stories come to me through email, via Facebook, and through this website. Recently, a new reader who discovered Consumerism Commentary due to my multi-year coverage of Bank of America (primarily the articles pertaining to the overdraft fee class-action lawsuit), wanted to share a cautionary tale about the same bank.
It's no surprise that bankers are salespeople. Some are encouraged to sell financial products with compensation like bonuses or commissions, and they are not required to sell products that are in their customers' best interests. Salespeople in any field are there to make money for their companies - that's it. At the same time, consumers look to certain types of salespeople as experts, relying on these professionals to help them navigate complicated products.
I've never opened a home equity loan with a bank. I don't have a home or a mortgage, so I don't have personal experience with the type of product discussed in this article. But I took this opportunity to research the subject. There might be financial professionals, planners or advisers who are required by their certification to give advice with their clients' best interests in mind, who might be able to elucidate the issue even further.
I'll share the story in a future article because I wanted to ensure I was more familiar with the particular product, credit life insurance, before addressing the general concern she had. The concern is not with the product itself but with how Bank of America charged her for the coverage, and I'll explain that in detail in a future article.I say the following with no judgment whatsoever about anyone who has knowingly chosen, while understanding what a credit life insurance policy does and does not cover.
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