What Exactly Is Credit Life Insurance? 
Credit life insurance is a policy that will pay the lender if you should die before your loan is paid off . The face amount of the policy decreases as your unpaid loan decreases . Credit insurance is often sold by the same lender that gives you the loan . You can often get a better rate by shopping for a regular term life insurance policy . The face amount stays level and the part that does not need to go to the lender can go toward other needs . 