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 policyholder for covered accounts receivable if the debtor defaults on payment.

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