Consumer Credit Regulation: 6.3.4.6 Non-Credit Insurance Distinguished
Creditors may offer to sell ancillary insurance, unrelated to the debt itself. This insurance does not protect the creditor against any risk relating to the account, unlike credit insurance, where the beneficiary is the creditor or the debtor’s account. However, the creditor will finance the premium for this “separately” purchased product. The creditor may sell cancer insurance, accidental death and dismemberment insurance,140 or level term non-credit life insurance (in addition to the credit life).