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Insurance - Credit Insurance
What is credit life insurance?
A type of life insurance that helps repay a loan if you should die before the loan is fully repaid.
This is optional coverage. When purchased, the cost of the policy is often added to the principal amount of the loan. Lenders must disclose the terms and costs of obtaining the insurance since it can affect the terms of the loan. Some policies combine Credit Life and Credit Disability into one policy and may contain provisions for cancellation of the policy.
Can my bank force me to buy credit insurance?
No. However, once you sign up for credit insurance on your loan, the cost of your coverage becomes part of your contract with the bank. Some policies contain provisions for cancellation of the policy.
What is credit disability insurance?
A type of insurance, also known as accident and health insurance, that makes payments on the loan if you become ill or injured and cannot work.
This is optional coverage. When purchased, the cost of the policy is often added to the principal amount of the loan. Lenders must disclose the terms and costs of obtaining the insurance since it can affect the terms of the loan. Some policies combine Credit Life and Credit Disability into one policy and may contain provisions for cancellation of the policy.