Two national consumer advocacy groups have called on state insurance regulators and legislators to lower the rates for credit life insurance, which they say is a highly overpriced and frequently unnecessary product.

According to data from the Consumer Federation of America and the U.S. Public Interest Research Group, credit life insurance products pay out 42% of the premiums collected. The industry standard calls for at least 60% of premiums to be paid in claims. Credit life, a product commonly sold by banks and credit unions, pays off a loan if the borrower dies.

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