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The life insurance death benefit even has the. potential to be estate tax-free if properly owned and structured. For these reasons, life insurance is more than just a necessary. expense â it is an important asset to own within your portfolio.
Insurance that covers such a loan is known as credit life/credit disability. Some policies cover only life, some. cover only disabilities, and others cover both. Credit disability is often called credit accident and health. insurance. Credit life insurance = decreasing term insurance. Credit life is similar to a special type of life insurance called âdecreasing termâ insurance. â¢ A credit life policy is issued for an amount equal to how much you owe. â¢ As your loan balance decreases, so does the face amount of the credit life policy.