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What is credit life insurance?

 

 

What is credit life insurance?

The Bankrate.com financial term of the day is: "credit life insurance."

If you die, will your family have trouble keeping up the mortgage and holding on to the house? If the answer is yes, you may want to consider credit life insurance. It's coverage that completely or partially pays off a loan following the death of the borrower. Some lenders require credit life insurance, which can be rolled into the loan. The Federal Trade Commission warns consumers that the insurance can be expensive and that it may make more financial sense to buy additional standard life insurance instead.

Credit life insurance is designed to cover a debt in case of death, but it may not be the wisest investment.

To shop for insurance to fit your family's needs, visit the Insurance section at Bankrate.com.

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Auto Insurance Averages
Product Rate
Auto - Couple, age 30
$ 1638.13
Auto - Couple, age 45
$ 2794.86
Auto - Female, age 50
$ 1505.29
Auto - Male, age 50
$ 1561.24
View rates in your area:
The National Insurance Crime Bureau reports insurance fraud rose 27 percent nationwide from 2010 through 2012.
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