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ROLE OF CREDIT/MORTGAGE INSURANCE |
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CREDIT LIFE INSURANCE
Credit life insurance, a form of decreasing term insurance, protects creditors such as banks. The borrower pays the premium, generally as part of the credit transaction, to cover the outstanding loan in the event he or she dies. The face value of a policy decreases as the loan is paid off until both equal zero. When loans are paid off early, premiums for the remaining term are returned to the policyholder. Credit accident and health, a similar product, provides a monthly income in the event the borrower becomes disabled.
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CREDIT LIFE, AND CREDIT ACCIDENT AND HEALTH INSURANCE
DIRECT PREMIUMS WRITTEN, 1998-2007
($000)
Year |
Credit life |
Credit accident and health |
| 1998 | $1,998,488 | $1,798,194 |
| 1999 | 1,971,462 | 1,724,729 |
| 2000 | 1,849,655 | 1,675,327 |
| 2001 | 1,632,806 | 1,551,697 |
| 2002 | 1,251,275 | 1,331,639 |
| 2003 | 1,046,474 | 1,119,672 |
| 2004 | 1,150,182 | 1,156,540 |
| 2005 | 1,257,314 | 1,135,342 |
| 2006 | 1,091,950 | 1,012,901 |
| 2007 | 1,131,676 | 1,033,680 |
| Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC. |
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