When a consumer closed end loan includes credit life insurance should the finance charge include the amount of the insurance . Should the finance charge + amt financed always be equal to the total of payments in the fed box?

Voluntary credit life is not a finance charge if properly disclosed. And the answer to your last question is yes.

So the voluntary CL would be included in the amt financed?

If you are financing single premium voluntary life insurance upfront it would be.

...However, like everything else in Reg. Z, there can be exceptions to that rule of thumb--depending on the terms of the legal obligation between the parties. From Section 1026.18(g), OI #1: "The payments may include amounts beyond the amount financed and finance charge. For example, the disclosed payments may, at the creditor's option, reflect certain insurance premiums where the premiums are not part of either the amount financed or the finance charge, as well as real estate escrow amounts such as taxes added to the payment in mortgage transactions." Section 1026.18(h), OI #2 goes on to say: "The total of payments is the sum of the payments disclosed under §1026.18(g)."

If you charge a premium monthly based on the loan balance do you disclose an estimated charge based on the amortization and it is or is it NOT included in the amount financed. (Hope I am making sense).

The credit insurance is voluntary, right?
Are you financing any of the insurance premiums, or, does the borrower pay the premiums as they become due, and the lender merely passes the payments through to the insurance company.

The insurance is voluntary. The premium is part of the payment due (based on the outstanding balance) and we pass the premium on to the insurance company.

Then the premium has no place in the transaction disclosure because it is neither a FC nor an AF. Assuming you complied with Section 1026.4(d)(1) and the borrower chose to purchase the optional insurance voluntarily, then the premiums are not disclosed as FCs. Since the borrower is on a pay-as-you-go plan for the premiums, then you have not extended any credit for the purpose of paying premiums. To be included in the AF, the premium would have to be financed (added to the principal amount written into the note.) "Single premium" insurance DOES call for financing of the entire premium for the life of the insurance. The pay-as-you-go plan you describe is not single premium...and no part of the premium is financed. Since no part of the premium is financed, then the premium should not be included in the AF.