Final answer:
Credit Life insurance is commonly a Decreasing Term policy that pays off a borrower's loan balance in the event of their death, and it reduces as the loan balance is paid down.
Step-by-step explanation:
Credit Life insurance is typically a Decreasing Term life insurance policy. This type of insurance is designed to cover the balance on a loan in the event of the borrower's death. As the loan balance decreases over time, so does the death benefit. This contrasts with Cash-value (whole) life insurance, which has both a death benefit and a cash value. The cash value is an accumulated amount that can serve as a savings account for the policyholder's use.