What type of insurance might be considered a form of credit life insurance?

Decreasing term insurance is specifically designed to align with the balance of a loan or debt, making it a suitable form of credit life insurance. This type of insurance provides a death benefit that decreases over time, which corresponds to the expected decline in the outstanding balance of a loan, such as a mortgage or auto loan. If the insured dies before the loan is fully paid, the decreasing benefit ensures that the remaining balance can be paid off, thereby relieving the borrower's estate or family from the financial burden.

In contrast, whole life insurance offers a permanent coverage with a cash value accumulation, which does not directly correlate to a specific loan amount. Universal life insurance, likewise, provides permanent coverage and flexible premiums, but does not typically decrease in value over time based on debt repayment. Term insurance with steady payments offers a fixed benefit for a specified period but does not decrease in its coverage, which does not match the characteristics of credit life connected to a variable debt amount. Thus, decreasing term insurance is the most appropriate type of insurance in this context.