What is Group Creditor Life Insurance?

Banks, finance companies, credit unions, retailers, and others may qualify for group life insurance on the lives of individuals who borrow money from the creditor. Although one purpose of group creditor life is to protect lenders against possible financial loss due to the death of a debtor, these companies are often in the business of selling the insurance and, therefore, profit from the sales directly.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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