If my bank offers debt cancellation insurance, can the bank force me to buy this product?
No. However, once you sign up for optional debt cancellation coverage (also known as credit insurance) on your loan, the cost of your coverage becomes part of your contract with the bank. Some policies contain provisions for cancellation of the policy. Review your loan agreement for policies specific to your bank and your loan.
Note that debt cancellation coverage is different from private mortgage insurance.
Last Reviewed: October 2020
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.