Credit Life Insurance

Credit life insurance

A type of insurance used with decreasing term insurance only used when theres a debt or loan that needs to be repaid. - Insurance put in place in case the insurer (borrowerr/ debtor) dies before the debt has been paid.

Payor is the

Borrower / Debtor - responsible to pay the premium

Insured is the

Borrower / Debtor - the one who is covered

Policy owner is the

Creditor - all the rights on policy

Beneficiary is the

Creditor - receives death benefit