Credit Insurance
Credit insurance is sold in connection with a loan, a credit card or other credit account and is designed to make payments to the lender for the borrower if he/she is unable to make the payments.
The most common types of credit insurance are:
Credit Life
Credit Life pays off the consumer's remaining debt on a specific loan or credit card account if the borrower dies during the term of the coverage.
Credit Disability (also called credit accident and health)
This insurance pays a limited number of monthly payments on a specific loan or credit card account if the borrower becomes disabled during the term of the coverage.
Credit Involuntary Unemployment
Unemployment Insurance pays a limited number of monthly payments on a specific loan or credit card account if the borrower becomes involuntarily unemployed during the term of the coverage.
