Credit Insurance is that kind of insurance which is associated with a certain loan or line of credit paying back some or all of any owed money in case the borrower is affected by death, disability, or unemployment. The concept of credit insurance had emerged at the end of nineteenth century, but it was popularized in Western Europe in the inter-war period. Credit Insurance is used to describe both Trade Credit Insurance and Credit Life Insurance. Credit insurance USA is also a developed industry in modern times.
While Trade Credit Insurance is purchased by corporations to insure their accounts receivable (ARs) from loss in case the debtors turn insolvent, Credit Life Insurance is a consumer purchase, like for an automobile. The insurance will pay the loan balance in case of the death or the disability of the borrower.
Credit insurance is a guaranteed issue and individuals forgo credit insurance and instead opt for a term life insurance or disability insurance policy to cover the credit balance.
Credit Insurance Companies in the USA includes:
• Coface North America
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