What Is A Credit Life Insurance Contract? 
A credit life insurance contract is a decreasing term life insurance policy that will pay the off the loan for a borrower if the borrower passes away . Credit Life insurance is usually provided by the lender at a price they set , and the beneficiary is the lender . Traditional Life insurance can be used to pay off a loan with the following advantages : 1 -RRB- The death benefit does not decrease , so whatever does not go to the lender can be used for something else ; 2 -RRB- The borrower can shop around to get a more competitive price ; 3 -RRB- The policy is under the control of the policy owner , not under the control of the lender . 