Final answer:
Credit insurance covers outstanding loan balance in case of disability or death, but does not terminate when loan is repaid and does not typically protect installment debt.
Step-by-step explanation:
Credit insurance is a type of insurance that protects borrowers in the event that they are unable to repay a loan. It typically covers the outstanding balance of the loan in case of disability or death. However, there are some exceptions to what credit insurance covers. One exception is that the coverage does not terminate when the loan is repaid. This means that even after the loan is fully repaid, the credit insurance may still be in effect.
Another exception is that credit insurance does not typically protect installment debt. Installment debt refers to loans with fixed monthly payments, such as car loans or home loans. Credit insurance is more commonly used for revolving debt, such as credit card debt.
Therefore, the statement that is NOT true regarding credit insurance is 'coverage terminates when the loan is repaid'.