Life Insurance to Pay off Debt?

Can I buy life insurance coverage to pay off my debt?

Yes, you may purchase term life or permanent life insurance, and the proceeds may be used by your beneficiary to pay off any debt you leave behind upon your death.

Many people use life insurance to provide their loved ones with the funds needed to pay off their remaining debt.

For example, 20 or 30-year term life insurance is often used to provide mortgage protection, so your family has the money needed to pay off the mortgage loan should you die before it is fully repaid.

Some common debts people use life insurance to pay off include home mortgage, auto mortgage, personal loans, college loans, taxes owed the IRS, and hospital and healthcare bills, among other things.

Here's how to get affordable life insurance to pay off debt.