This policy is designed to pay the outstanding debt in the event that the borrower dies, is permanently disabled or loses his job. The premium on the policy decreases proportionately with an outstanding loan amount as the loan is paid off over time.
- Credit life insurance is a specialized type of life insurance policy intended to pay off specific outstanding debts in the case the borrower dies before the debt is fully repaid.
- Such a policy may be required by certain lenders for specific purposes.
- Credit life policies feature a term that corresponds with the loan maturity and decreasing death benefits that correspond with the reduced debt outstanding over time.
Benefits Of Credit Life Policy
- Credit life insurance pays off a borrower’s debts if the borrower dies.