Canadians have faced many unprecedented financial hurdles over the last several years. Unfortunately, financial anxiety levels remain high amongst Canadians, most recently being tied to job stability.
Thankfully, car dealers are equipped with products like Loan Protection that enable customers to safeguard their finances during periods of unemployment. More than ever, it’s important to be able to effectively position these products so that customers understand their benefits and to help ease anxieties about how they would manage their car payments if they lose their job.
In this article, we provide a free tool to help you make the case for Loan Protection and answer these questions:
- What are the financial implications associated with job loss?
- How can car customers protect themselves from these financial implications?
- How can Financial Services Managers help customers visualize how their finances will break down if they lose their job?
What are the financial implications associated with job loss?
For the average single Canadian, the monthly cost of living is $1,441. That number jumps to $5,190 per month when considering an average family of four.
In the event of job loss, a person’s income is often significantly reduced, even with government provided Employment Insurance (EI), which is often not enough to cover essential expenses like car loan repayments.
How can Loan Protection help your customers protect their finances in the event of job loss?
It’s an unfortunate fact that if the customer loses their job, they’re still liable for their car loan payments. And during a period of unemployment, a car becomes a life preserver that helps them get to all the critical interviews and appointments to help them secure their next job.
Loan Protection covers the customer’s car loan payments in the event of job loss. This type of protection has many benefits, including:
- Peace of mind: Customers can rest easy knowing their car loan payments will be taken care of in difficult times.
- Financial protection: Their personal savings, investments, and credit ratings will be preserved.
- Insurance stability: The value of other insurance policies they may hold is maintained.
How can Financial Services Managers help customers visualize how their finances break down during job loss?
We created the Loan Protection Budget Tool to help Financial Services Managers effectively demonstrate the financial impact of job loss and show how Loan Protection offers vital protection. Download the tool now to enhance your Loan Protection presentation.
Don’t forget to check out our next blog, ‘Become a Loan Protection expert (part 2): Showing income breakdown after job loss’. Learn more about Loan Protection and income loss best practices, and access another free tool that will further elevate your F&I presentation.
If you need any support with using this tool, please don’t hesitate to reach out to us at Sales@LGM.ca or contact your local LGM Dealer Development Manager (DDM).
Disclaimer: The content for our blog is written by LGM Financial Services Inc. and provided for informational purposes only. While we want to provide you with valuable insights into vehicles, protection products and related topics, none of the information posted in our blog is intended to provide you with any mechanical, financial, legal or other professional advice. LGM disclaims all liability related to our blog and provides posts on an “as is” basis; we may reference third-party sources of information and we always strive for accuracy. Any amounts are only mentioned for illustrative purposes. Product information is provided in summary form and products may not be suited to your personal circumstances; please refer to the contractual terms and conditions applying to those products. LGM is committed to integrity and transparency; while LGM may have a financial interest in certain products mentioned in our blog, we only write about products that we know and trust. Thanks for reading!
