Credit Life Insurance

Definition

  • A type of life insurance that helps repay a loan if the consumer becomes disabled or dies. It is optional coverage. When taken out, the cost of the policy is sometimes rolled into the loan principal amount.

Synonyms
credit card debt insurance, credit insurance policy, debt coverage

Related Terms and Acronyms

  • Credit Insurance Definition,
    • A policy that pays off the card debt should the borrower lose his job, die or become disabled. The structure of protection for a revolving credit card debt is calculated each month to cover only the debt that existed at the last billing cycle.
    • Insurance that covers borrowers and/or lenders if one is unable to repay debts.
  • Creditor Insurance Definition,
    • Insurance that repays debt if the borrower cannot.
  • Life Insurance Definition, Very Important,
    • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
    CanEquity offers life insurance.
  • Mortgage Life Insurance Definition, Very Important,
    • Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
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