Croak and Choke (insurance)
“Croak and choke” (or “choke and croak”) is a slang name for the credit life insurance (“croak” means to die) and disability insurance (“choke”) that’s sold along with a car loan. Radio host and consumer advocate Clark Howard has talked and written about “croak and choke,” and several consumer advocates claim that the insurance is usually overpriced.
“Choke and croak” insurance has been cited in print since at least 1991.
Urban Dictionary
Choke & Croak
Term used at auto dealerships to describe supplemental life insurance that is sold during the part of the sale where the financing is arranged. This type of insurance would pay off your loan if you die, it is a source of “back end” profit” for the dealer.
“That customer was a total lay-down; he bought Slip & Trip (a similar disability insurance), Choke & Croak and Rust & Dust (paint protection)
by St. Jerome Dec 9, 2008
Google Books
Terry Savage Talks Money:
The common-sense guide to money matters
By Terry Savage
New York, NY: HarperPerennial
1991
Pg. 120:
Another source of profit for dealers is credit life and disability insurance — something commonly referred to as “choke and croak” insurance. It may add only a few dollars a month to your payment, but these policies tend to be overpriced.
Businessweek
April 18, 1994
Letter From Florida
THIS IS NOT YOUR FATHER’S SALES TRAINING
(...)
I also hear about financing tricks: “double croak and choke”—talking couples into unnecessary death-and-disability insurance—and “rust and dust”—selling pricey rustproofing or upholstery treatment.
(...)
KATHLEEN KERWIN
Google News Archive
25 August 1999, Ocala Star-Banner, “Credit life insurance a ‘rip off,’ say consumer advocates” by Robert Heady, pg. 6D, col. 3:
Insurance industry spokesmen argue that credit life is beneficial to certain folks, such as the elderly. But consumer advocates, who’ve dug deeply into what some observers call the “croak and choke” business, see it differently.
6 November 2003, Atlanta (GA) Journal-Constitution, “Stretch dollars with flexible spending accounts,” pg. NW16:
“Croak and choke” insurance is being pushed heavily by retailers and car dealers.
Google Books
Autocar
2005
Pg. ?:
CROAK AND CHOKE Life assurance and disability insurance policies sold with the car loan.
Google Books
Slang!:
The topical dictionary of Americanisms
By Paul Dickson
New York, NY: Walker & Co.
2006
Pg. 30:
croak and choke. Adding credit and disability insurance to a car loan.
ClarkHoward.com
Posted: 1:02 p.m. Wednesday, March 28, 2012
Why credit protection insurance is a rip-off
By Clark Howard
Banks, credit card companies and really any company in the financial services industry are trying to steal your money right now by getting you to sign up for credit protection plans.
The basic pitch here is that your lender will take care of your minimum payments in the event you can’t make your monthly credit card bill because of job loss or temporary disability.
This is really a more current version of what’s been called “croak and choke insurance” (aka mortgage life and disability insurance) in the real estate financing field. With croak and choke, you buy a policy that names your mortgage lender as beneficiary in the event of your death. And you get stuck paying premiums during the life of your loan that are roughly 10 times the free market rates for insurance.
ClarkHoward.com
Avoid “Croke & Choke” banking practices
Your bank is perfectly happy to take care of your credit card payments in the event you can’t meet your obligations because you become disabled or die. But at what cost to you?