Credit Insurance

The Wall Street Journal reported on a man who went into the hospital with a terminal illness. He wrote his wife a check on his credit card for $10,000. The credit card had credit life insurance (see above) on it. His wife used the money as a down payment for an expensive car which she purchased in her husband's name. Through the car dealer, she purchased automotive credit life insurance on the loan for the balance of the purchase price.

When the husband died, the life insurance on his credit card paid off the $10,000 debt, and the life insurance on the car loan paid off the debt on the car. After his death, his wife owned the car free and clear.

If you have new uses of credit, please share them with us by posting them on our Finance Message Board or by writing to Survivorship A to Z.

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