Final answer:
Credit life insurance policies are typically issued as term life insurance, intended to cover a debtor's debt if they pass away during the term of the coverage, without accumulating cash value like whole life insurance.
Step-by-step explanation:
Credit life insurance policies are typically issued as term life insurance. This type of insurance is intended to cover a debtor's outstanding debt in the event of their death. Unlike whole life insurance, which includes a death benefit and can accumulate cash value over time, term life insurance provides coverage for a specified period or "term" and does not include a cash savings feature. Credit life insurance is often offered during the loan origination process and its coverage amount typically matches the loan amount, decreasing as the loan is paid down.