What is credit life insurance?
Credit life insurance is generally a type of life insurance that may help repay a loan if you should die before the loan is fully repaid under the terms set out in the account agreement.
This is optional coverage. When purchased, the cost of the policy may be added to the principal amount of the loan. In some circumstances, lenders may be required to disclose certain terms and costs of obtaining the insurance. Some policies combine credit life and credit disability into one policy and may contain provisions for cancellation of the policy.
Last Reviewed: October 2020
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