Credit Life Insurance: Protect Your Home Loan & Heirs

If you are a homeowner, then you need more information about credit life insurance. This type of insurance should not be confused with regular life insurance. Credit life insurance is purchased by homeowners to payoff the balance of the home loan. The policy is utilized in the event that the borrower should pass away, the loan on the home will be paid in full. This frees your heirs from being financially obligated to continue paying the home, or losing the home all together.

Obtaining A Policy

If your lender does not have it as part of the package, you can contact insurance agents to obtain a credit life insurance policy quote. You will need to determine the amount of coverage and should examine any risks that could affect your premium, such as your occupation or health. Some insurers will issue a higher premium for smokers or for those who work in high-risk occupations. Be sure to shop around and ask questions about the cancellation policy. Also, be sure to ask whether the rate is fixed or if there are monthly, or annual premium, renewable options available.