Credit Life Insurance

Credit life and disability insurance is used to pay off a debt after you pass on or have lost some parts (dismemberment).

• The total cost may add up to hundreds of dollars
• The lender gets the insurance money
• Nothing goes to your estate
• The premium usually financed on top of your loan amount
• Usually not explained to the borrower
• Usually a maximum term of around 48 months
• Won't insure folks over 65-70 (those most likely to use it)
• Hard to comparison-shop