What Is Credit Life Insurance? 
Credit life insurance is life insurance sold by the credit card company to cover their loss if the borrower passed away . The payment would go directly to the lender in the amount that was still owed on the credit card . Contrast this with regular life insurance , which you would leave to a beneficiary who could use it to pay bills in order of importance , and if there was some left over , use it for themselves or other causes you believe in . 