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A budget helps us to save money? |
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Credit life insurance is used to pay off a debt, such as a loan for car, furniture, electronics, appliances, etc., if you die or are disabled. It is a type of decreasing term life insurance.
It is insurance on a debtor, in favor of a lender. Although they may have some similar features, it is not the same as mortgage life insurance.
You may be offered this sort of policy when you are financing a large item. The premiums are usually added into the loan contract. It is , and it can be quite expensive. Note that it often illegal for a lender to require you to buy it.
In answer to the question "Is credit life a good buy?," For-Insurance states:
If you already own a sufficient amount of life insurance to cover your financial needs, including debt repayment, the purchase of credit life insurance is normally not advisable due to its relatively high cost.
First answer by Anonymous. Last edit by ID0000000000. Question popularity: 191 [recommend question]
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