 For lenders, credit 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.