Credit insurance or death benefits are not legally required. When offered they almost always involve an additional payment. It is a predatory product. If you were really worried about the possible $10,000 balance on a loan or credit card at the time or your death you could more easily cover than with a very cheap term life insurance policy. Many CU offer a minimal life insurance policy for free to customers. I think I have one for 3K.
@rbently: Thank you for responding good to hear from you again. I’m aware one is not legally required to have said insurance. However, my query is whether or not a creditor is legally required to make it available for purchase to an installment debtor. I’m asking for a friend and your advice may be right on point and exactly what we needed to hear. Thank you.
No, there is no legal requirment that a creditor make loan/credit insurance available. The ones that do offer it because it is an additional profit center for them. I always decline it.