Credit Insurance

What is a credit insurance premium?

The are a number of factors - including the amount of the loan or debt, the type of credit and the type of policy - that might impact the cost of a credit insurance policy. Companies will generally charge premiums by either using a single premium method or a monthly outstanding balance method.

What is credit card insurance for?

Credit card protection insurance. Credit Shield. Payment protection. Credit safeguard. But no matter what name it goes by, this insurance aims to provide the cardholder with the same thing: security in case unemployment, injury, disability, or death makes paying your monthly credit card bills impossible

What is trade credit insurance scheme?

Trade Credit Insurance Scheme (TCIS) The Trade Credit Insurance (TCI) is an important tool for companies to protect their cashflow against non-payment by their buyers, thus allowing them to acquire new customers with greater confidence.

What is a credit life insurance policy?

Credit life insurance is a life insurance policy designed to pay off a borrower's debt if that borrower dies. The face value of a credit life insurance policy decreases proportionately with an outstanding loan amount as the loan is paid off over time until both reach zero value.

How do credit insurance work?

Credit insurance protects your company against the failure of your customers to pay trade credit debts owed to you. These debts can arise following a customer becoming insolvent or failing to pay within the agreed terms and conditions (protracted default).

Is credit life insurance required by law?

Generally speaking, under federal law, a lender is prohibited from requiring credit life insurance as part of a loan arrangement. But the law does not prohibit them from offering you the coverage.

What does my credit card insurance cover?

Generally speaking, they do not cover things such as personal injury or personal liability, although you may have that coverage through your auto insurance and health insurance. But they do typically cover collision damage and theft protection.