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creditor group life insurance

Creditor group life insurance is a form of group life insurance issued to a creditor (e.g., bank, credit union) to insure the lives of its debtors in the amount of their unpaid debt.

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Additional Information

Coverage is provided for both the debtor's estate and the creditor's benefit, as the proceeds are used to discharge all of the indebtedness to the creditor.

Related Terms

Credit life insurance refers to term life insurance that pays off the balance of a loan if the...