Credit life insurance, in essence, works exactly the same as credit insurance in that your debt is taken care of in case something happens and you are unable to pay it. Credit life insurance is taken out to cover large loans such as your mortgage or car in the event of your death. To that end, benefits will usually not cover your credit commitments if you are diagnosed with a terminal illness, disabled or retrenched. Because the value of the loan decreases over time, the premiums also get lowered. This is contrary to normal credit protection for credit cards or other forms of revolving credit where the amount owed remains more or less stable for a significant period of time, until the client decides to settle the outstanding debt. Certain financial institutions will not grant vehicle finance loan or a mortgage unless credit or credit life insurance is taken out against the loan.