insurance

5 things to know on credit life insurance

Credit life is costlier coverage
Next
3 of 7
Back
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.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jay MacDonald

Mild hurricane season forecast

Forecasters predict a mild 2014 hurricane season, but with El Nino forming, just the opposite is possible.  ... Read more

advertisement
Partner Center
advertisement

Connect with us