credit life insurance

Definition

A type of insurance, often bought by mortgagors, in which the amount of the policy matches the loan balance at any given time; designed so that the loan will be paid off in full in the event of death.

Use this term in a sentence

I figured out that credit life insurance was meant to exist so people would have everything paid off before they died.

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Credit life insurances offers a type of security to entities that would loose substantially if the person that they are loaning money to had an unexpected death.

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Credit life insurance refers to a specific type of life insurance which is purchased to make sure a creditor's estate can pay off a loan in case he/she dies before the loan is paid off.

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