What Does Credit Life Insurance Cover? 
Credit life insurance is generally designed to protect a creditor in the case of the demise of the borrower . So if you were to take a personal loan from a bank for say $ 100,000 , they may require that you take out a credit life policy that would name the bank as the beneficiary . Typically the credit life policy would be a decreasing term policy that would be only for the term of the loan and would decrease in value as the loan balance is reduced . 