Finance Quick Answers
What is credit life insurance?
Credit life insurance pays off a specific debt or loan if you are disabled. It is often very expensive in terms of its annual cost for a similar level of coverage under a term life insurance policy. Some companies also offer credit disability insurance, which would cover debt payments when you are disabled. It, too, is often a very costly type of coverage compared with similar coverage under a regular disability policy.
Brenda Procter, M.S., Consumer and Family Economics, College of Human Environmental Sciences, University of Missouri-Columbia
If you'd like to learn more about this and other personal finance topics, the University of Missouri offers 'Personal & Family Finance,' a correspondence course, through the Center for Distance and Independent Study (800-609-3727). Information about this course is available at http://cdis.missouri.edu/CourseInfo/DetailCourseInfo.asp?1985.
Last update: Tuesday, July 22, 2008