1. Peggy MacePRO
    President and Senior Agent, Outlook Life, Most of the U.S.
    J. T. Miller Co, Inc, sells credit life insurance. Pekin Insurance sells credit life insurance through a network of financial institutions and auto dealerships. State Farm sells Mortgage Life Insurance. Credit Unions, financial institutions, and lenders for home mortgages or auto loans are places where credit life insurance can often be purchased.
    Answered on July 27, 2013
  2. Tim WilhoitPRO
    Owner, Your Friend 4 Life, Brentwood TN
    Credit life insurance is a marketing name for decreasing term life insurance. Most large purchases such as a car, appliance or electronics, will offer you a credit life insurance plan. The most common type of decreasing term life insurance is mortgage life insurance.
    The reason it is set up as decreasing term life insurance is due to the repayment of the debt.

    For example, you purchase a home with $100,000 mortgage on 15 years. The face amount is $100,000 at time of purchase. However, you pass away at year ten. The mortgage owed is now $30,000, the face amount has now deceased from $100,000 to $30,000. You would have been better off purchasing a 15 year term life policy for the $100,000 and have your loved ones collect the $70,000 difference in face amount instead of losing this amount to the insurance company.

    Try to steer clear of credit life unless your health situation is too bad to qualify for regular life insurance. Good luck.
    Answered on November 2, 2015
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