5 things to know on credit life insurance

Credit life is costlier coverage
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Credit life is costlier coverage

While the price of a policy will depend on the loan amount, credit life insurance policies can cost more than traditional life insurance.

"It's generally a little more with credit life insurance because there's a greater risk associated with the product and that makes for higher premiums," Lynch says.

That higher risk comes into play because credit life insurance is what's known as a guaranteed issue product, meaning that eligibility is based solely on your status as a borrower. Unlike most life insurance policies, the applicant won't be asked to take a medical exam or disclose health details because what's being insured is the balance of the loan, not the life of the borrower, says Lynch.




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