Can A Lender Require Credit Life Insurance? 
That is a great question ! The lender is going to ask you to have this insurance if they believe there is a reasonable chance that they may not get repaid . This is a common requirement in mortgage lending , for example , when large sums are loaned . As such , it may be a requirement for them to issue you the loan . You can either decline to purchase the insurance , and look for another lender , or if possible , show them proof that you have another way to pay off the loan if needed - like a sizable life insurance policy . It may be cheaper to purchase a decreasing term loan , and show them that , than it would be to purchase their policy . If you would like more details , please contact me . Thanks for asking ! 