Analyze the importance of credit life and life insurance for a family that has two wage earners, a mortgage, a moderate amount of credit card debt, and two auto loans, should one of the two wage earners die unexpectedly.
Credit life insurance pays a policyholder’s debts when the policyholder dies. Unlike term or universal life insurance, it doesn’t pay out to the policyholder’s chosen beneficiaries. Instead, the policyholder’s creditors receive the value of a credit life insurance policy.
