life insurance loss ratios typically reach 44%, meaning 44% of premiums paid on the credit life insurance product are paid back in claims, compared to non-credit insurance product loss ratios of at least 70%. While many states cap interest and loan fees, lenders use products such as credit life insurance to increase profit and the overall cost of loans. States where the sale of credit insurance is authorized were found to include at least one type of insurance included with loan contracts in 80% of cases. On average, the contracts analyzed included 2.67 insurance and other ancillary products. Consumers who refinance loan can be adversely affected by credit insurance because most of the money that consumers typically pay before refinancing is applies to fees and interest. The Federal Trade Commission has issued a consumer alert concerning various types of credit insurance, including credit life insurance. The FTC consumer alert includes credit insurance shopping tips for consumers seeking a loan. Advocates for credit insurance products argue consumers that are not insurable could benefit from a product such as credit life insurance rather than standard life insurance as no medical exam is required in the former scenario. In the 9 states that have community property laws in place, the surviving party could be responsible for the debtholder's repayment without life insurance or credit life insurance in place. See also Lenders mortgage insurance Mortgage insurance References Types of insurance Mortgage Protection insurance