Credit life insurance is used to repay a personal debt should the borrower die before doing so.Group of answer choicesTrueFalse

Analysis of the Statement

Credit life insurance is designed to pay off a borrower's outstanding debts in the event of their death. This type of insurance is specifically aimed at protecting lenders and the borrower's estate from the burden of repaying debts, including personal loans, credit cards, or mortgages.

Conclusion

Given the definition and purpose of credit life insurance, the statement that it is used to repay a personal debt should the borrower die before doing so is indeed True.

This type of insurance ensures that the debt does not fall onto the borrower's family or estate, providing peace of mind to both the borrower and the lender.