In group credit life insurance, who typically pays the premium?

In group credit life insurance, the lending institution is typically responsible for paying the premium. This type of insurance is designed to pay off a borrower's debt in the event of their death, protecting both the lender's financial interest and the borrower's estate.

Since the insurance is linked to the credit provided by the lending institution, the lender usually pays the premium to ensure that the protection is in place throughout the life of the loan. This arrangement allows borrowers to have peace of mind that their loan will be covered without any additional burden of premium payments. The cost may be passed on to the borrower indirectly through the terms of the loan.

This structure is beneficial because it simplifies the process for the individual and ensures that the coverage is consistently maintained as long as the loan is active.