Credit life insurance is a type of insurance that is designed to pay off a person's debts in the event of their death. Credit life insurance is often offered by lenders as an optional add-on to a loan or credit card account, and it can provide peace of mind to borrowers who are concerned about their loved ones being left with a burden of debt. Credit life insurance policies typically pay out an amount equal to the borrower's outstanding debts, and they may also cover other expenses, such as funeral costs.