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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • credit life insurance — noun : insurance on the life of a debtor under an installment purchase contract relieving the debtor s estate of further payments in event of his death * * * insurance guaranteeing payment of the unpaid portion of a loan if the debtor should die …   Useful english dictionary

  • credit life insurance — insurance guaranteeing payment of the unpaid portion of a loan if the debtor should die. * * * …   Universalium

  • credit life insurance — noun insurance guaranteeing payment of the unpaid portion of a loan, in the event of the debtor s death …   Australian English dictionary

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  • New York Life Insurance Company — Type Mutual Industry Insurance: Life Annuity Founded 1845 …   Wikipedia

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