Credit Insurance at Legal Glossary

What is it? Insurance a lender requires a borrower to purchase to cover the loan. If the borrower dies or becomes disabled before paying off the loan, the policy will pay off the remaining balance. Federal and state consumer protection laws require the lender to disclose to existing and potential borrowers the terms and costs of obtaining credit insurance because it can affect the terms of the loan.

Law Definition Added By: Abby

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We hope you now understand the meaning of Credit Insurance. If you need any more information on this term, please don't hesitate to contact us.

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