The Ultimate Tool to Personal Financial Crisis Protection

In today’s environment, it is crucial to have a concrete plan for those unexpected events in life such as accidents, wage loss, injuries, and deaths. We are getting more vulnerable every year, as total U.S. consumer debt reached $2.5 trillion in December 2011[1] and the average household has $15,799 in credit card debt [2]. If consumers are struggling to pay off debts even when they have a steady source of income, how hard would it be if their paycheck is reduced, or even worse, completely gone?

A disabling injury or a direct family member’s death is a devastating event emotionally and financially. Yet, a lot of people choose to believe that they are exempt from life’s unfortunate turns or that their employer’s insurance coverage will take care of their injuries. Reality is not always that favorable – on average there are more than four unintentional injury deaths per minute, and one medically consulted injury every 0.01 second.[3] Accidents happen more often than we hope; and once a family is hit with the misfortune of losing its main source of income, bankruptcy and foreclosure may be inevitable. Even a deliberate financial plan can collapse when the breadwinner loses their ability to work. Four in ten households with children under eighteen would immediately lose their ability to pay for everyday living expenses in the event of a primary wage earner’s death[4].

Encourage consumers to actively protect themselves from not being able to meet their financial obligations, especially long before the crisis comes. Having debt protection products to counter death, disability, involuntary unemployment or a family medical leave of absence helps safeguard their financial outlook. With these services, financial institutions have the ability to cancel or suspend a borrower’s debt in certain circumstances. Purchasing additional coverage to minimize debt liability in unfortunate events is the foundation to building a more secure future for the consumer and their families.

[1] 2 Feb 2012

[2] Federal Reserve Join Economic Committee, Sallie Mae, TransUnion Jan 4 2012

[3] Injury Facts® Book, 2012 Edition, National Safety Council – Actuary has a hard copy

[4] LIMRA’s 2010 Life Insurance Ownership Study 8 Sep 2010

Tom Kazar

Tom Kazar

Tom Kazar is the Vice President of Sales and leader of the Sales Team for Transamerica – Financial Solutions Group. Tom’s focus is on adding new insurance industry products, expanding ... Web: Details