Credit Insurance

Credit insurance repays some or all of a loan when certain circumstances arise to the borrower such as unemployment, disability, or death.

·         Mortgage insurance insures the lender against default by the borrower. Mortgage insurance is a form of credit insurance, although the name “credit insurance” more often is used to refer to policies that cover other kinds of debt.

·         Many credit cards offer payment protection plans which are a form of credit insurance.

·         Trade credit insurance is business insurance over the accounts receivable of the insured.

The policy pays the policy holder for covered accounts receivable if the debtor defaults on payment.

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