What does Credit life insurance mean?
Credit life insurance is a sort of insurance that is sold by the affiliates of card issuers. The people who purchase this kind of insurance can, under some circumstances, have an insurance company repay exceptional card balances, in the unlikely event that the main cardholder dies.
It is typically a term life insurance policy taken out on the life of the person borrowing, with the lender listed as the beneficiary. The company pays the money lender a fixed specific amount if the individual dies before fully repaying the borrowed sum.