Real Estate Terms Glossary
What is Credit Life Insurance?
We can define credit life insurance as a kind of life insurance policy that helps repay your debt, such as a business loan, if you die rather than leaving a death benefit to the beneficiaries. In most cases, providers roll the price of the policy in with the monthly loan payment.
Note that the premiums are higher since there is a higher risk associated with this insurance when compared to conventional life insurance.
Examples of Credit Life Insurance
- Example 1: Credit disability life insurance
- Example 2: Credit involuntary employment life insurance
Here’s Investopedia’s definition of Credit Life Insurance .
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