What is Credit Protection Insurance?
Credit Protection Insurance, also known as Creditor’s Insurance, Creditor’s Group Insurance, or Credit Insurance, is used to pay out a mortgage or loan balance (up to the maximum specified in the certificate of insurance) or to make/postpone debt payments on the customer’s behalf in the event of death, disability, job loss or critical illness. It can be obtained for a variety of debt obligations, including mortgages, consumer loans, lines of credit and credit cards.
How does Credit Protection Insurance Work?
Here are two examples of how Credit Protection Insurance works: