Credit Life Insurance

It is a group term policy whose death benefit decreases as the loan balance is repaid — Credit life insurance is a form of group term insurance sold in connection with a loan or other debt. The creditor is the beneficiary, and the death benefit is limited to the outstanding balance of the debt, so the coverage decreases as the loan is repaid. Because the policy is decreasing term, it builds no cash value and typically requires no medical examination. If the debtor dies, the insurer pays the remaining debt directly to the creditor, relieving the debtor's estate of the obligation to repay the loan.

National insurance concept