High-Quality Debt Protection
Negative equity is an all too common problem across the country. It has become an epidemic that is burying millions of Canadians in avoidable debt and causing unnecessary stress. With everything else going on in the world today, avoiding debt and anxiety have become top priorities world-wide. Here’s how high-quality debt protection can help.
Removing the stigma around insurance
One of the challenges contributing to negative equity is the stigma around insurance. Insurance products have a reputation for eliciting suspicion from consumers who are wary of paying for services they don’t need or purchasing inadequate coverage. However, with the increase of negative equity affecting Canadian consumers every day, the need for high-quality debt protection solutions for the average vehicle purchaser becomes more relevant than ever. As Canadians continue to spend more, take on more debt, and embrace longer financing or leasing terms, high-quality debt protection is the safest way to counter the effects of negative equity should something unforeseen happen.
How to spot high-quality debt protection
When considering high-quality debt protection solutions for your next vehicle purchase or lease, you should be aware of three things:
- The policy language
- The restrictions, exclusions, waiting periods, and qualifying periods
- Claim payment history
1. Clear & Plain Language
Some debt protection policies use tiny print and may even use a light grey font colour (as opposed to black), so the terms and conditions are difficult to read. They also use a lot of insurance jargon and legalese that are difficult for the average consumer to understand, especially those unaccustomed to reading insurance policy language.
High-quality debt protection policies have nothing to hide. These policies will use plain language, clear fonts and colours, and will be easy for Canadian consumers to understand.
2. Tricky Wording, Restrictions & Waiting Periods
The quality of some debt protection coverage can alter drastically with the change of one single word. For example, disability coverage that uses the term “own occupation” is of higher quality than one that says “any occupation.” For example, let’s say you’re a long-haul truck driver who can no longer drive your truck for the time-being; That doesn’t mean you’re unable to conduct the work of a telemarketer. In a situation like this, your coverage may be denied.
Disability coverage that uses the term “own occupation" is of higher quality than one that says “any occupation."
Some debt protection policies are riddled with words like “directly or indirectly,” which can also be a red flag for consumers. For example, imagine your physician suggested that you lose some weight, but you didn’t. If you suffered a heart attack, and the lack of weight loss was “directly or indirectly” linked to your heart attack, some policies may have grounds to deny you coverage.
A high-quality debt protection product will have no pre-existing health exclusions and won’t require any medical examinations, “good health statements,” or health questionnaires.
Watch out for pre-existing health exclusions, too. Nearly all debt protection coverage excludes people with pre-existing health conditions. If you had the condition before you bought the coverage and try and make a claim around it, you might not be covered. Also, many policies have inordinately long waiting periods that can prolong the claim process, sink you deeper into debt, and add stress.
A high-quality debt protection product will have no pre-existing health exclusions and won’t require any medical examinations, “good health statements,” or health questionnaires. A genuinely high-quality debt protection product, such as WALKAWAY Finance Protection™, also has no limits on the amount being financed for the vehicle.
3. History or Paying Claims & Claimant Feedback
Finally, always try to find out who underwrites the debt protection product. High-quality debt protection will be underwritten by an A-rated carrier. Also, ask yourself how long they have been around and how much debt have they settled. If possible, ask to see some customer feedback (e.g. surveys or Google reviews). Are they a licensed insurance broker with licensed people to provide professional advice?
While doing this kind of research can be time-consuming, it will be worth it to ensure that you are purchasing high-quality debt protection. You’ll be investing time and money in peace of mind. You’ll know that you’re protected from the unexpected.
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. This represents a summary of coverages and does not form a part of the certificate of insurance. Please consult your certificate for complete details regarding how you qualify. Employment-related coverages (excluding disability) begin on the 91st day. International Job Transfer is not available to residents of Alberta or Saskatchewan. Accidental Death is not available to residents of British Columbia. Self Employed Bankruptcy is not available to residents of Saskatchewan. Copyright © 2021, under licence to Insurance Insight Inc. All rights reserved, unauthorized use, reproduction, or disclosure is prohibited.
