Credit Insurance
Credit Insurance – What is Credit Insurance?
Credit insurance – is a special type of insurance wherein the individuals/businesses are covered under insurance for loss , bankruptcy , unemployment, death or any other incident or accident the disables the policy holder. In this type of insurance both the lender and the debtor feels safe as the debtor has the feeling that the debts will be paid off even in case of any misshaping and the lender has the feeling that he will gets his money back even in case of the debtor’s death. Read about car insurance coverage and find out what your car insurance policy covers. Read about different types of life insurance.
In some countries under the jurisdiction, the lenders are required by law to offer the credit insurance coverage at the time when they are giving the money to the debtor however it is not necessary for the debtors to purchase the credit insurance along with the debt offered by the lender. Credit Insurance is a very important tool or in fact a very effective tool during the times of credit risk and helps the lenders in efficient collection of their debts and also enables the development of new markets against protection provided. Premium in case on the credit insurance is charged on monthly basis and is generally driven by the brokers. Read about insurance companies in india.