5 things to know on credit life insurance

When you hear about credit life insurance, it's easy to confuse it with a standard life insurance policy. But consumers need to understand that credit life insurance, which is designed to pay off the balance of a loan in the event of death, isn't life insurance, says Kevin Lynch, assistant professor of insurance at The American College in Bryn Mawr, Pa.

"It can be a little confusing," Lynch says. "Although they're two very different products, they often accomplish very similar results." Of course, it doesn't help that the names are similar. But here are five things you need to know about credit life insurance.