Credit Life Insurance
A life insurance policy designed to pay off a borrower's debt if that borrower dies. The face value of a credit life insurance policy decreases proportionately with an outstanding loan amount as the loan is paid off over time until both reach zero value. Investopedia Says:
Credit life insurance can protect a person's dependents. It may also be required by some lenders; therefore, it is important to read the fine print of any loan agreement to determine whether credit life insurance is required. Related Terms:
Creditor
Debt Service
Dependent
Life Insurance
Mortgage
Mortgage Life Insurance |