Credit Life Insurance

Credit life insurance is life insurance designed to pay off specific debt in the event of death, unemployment, illness or another event that may inhibit your ability to pay.
 When you take out a loan, the lender may offer you a credit life insurance policy. This policy is issued through an insurance company that the lender partners with.
 The initial face value amount of the policy is equal to your loan amount. The policy's face value decreases over time as you pay down the loan balance.
 Premiums for credit life insurance are typically rolled into your monthly loan payments, and coverage begins when the loan is originated.
 If you die before the loan is repaid in full, your credit life insurance policy would cover the remainder of the loan, with policy proceeds paid directly to the lender to satisfy your remaining balance. 
The main advantage of having credit life insurance in place is reassurance. If you were to die leaving a large loan balance behind, your policy would be there to pay it off.
Should you buy credit life insurance? The answer depends largely on your needs and whether you have (or could qualify for) other life insurance policies that could help with paying off debt or other expenses when you die. If you have questions call 855-22money or contact us at yoursafemoneyshow.com.