Insurance on a debtor in favor of a creditor to pay off the balance due on a loan in the event of the death of the debtor.
Credit insurance refers to insurance policies designed to protect creditors from financial damage when debtors do not meet their obligations. Creditors buy credit insurance policies from insurance vendors to cover possible losses. Vendors repay the debt or portion of the debt owed to policyholders in cases where the debtor does not meet their obligation for reasons such as bankruptcy. Vendors raise the premiums charged on their credit insurance contracts if their financial standing deteriorates as a result of repaying more debts than initially expected. Small and midsize companies can use the credit guarantee corporation located in their prefecture as a loan guarantor when they receive loans from financial institutions. These corporations also use the credit insurance system. Their payments, however, have been rising sharply on behalf of borrowers, and the financial shape of the reinsurance operations of the public credit guarantee system is worsening. The government is expected to inject a total of 1 trillion yen into the public credit guarantee system over the next two to three years.
Insurance against losses due to inability or failure of the insured's customers to pay for goods sold by the insured. The insurance normally covers a specified percentage of each loss beyond a deductible indicated in the policy. Insurance is available covering a variety of risks, e.g., political and transfer risks ("country risks") and financial risks (called "commercial risks"). Even "comprehensive" insurance, however, will not cover non-payment for contract disputes.
There are two common types of credit insurance. Credit life insurance is optional insurance that pays the scheduled unpaid balance if the buyer dies. Credit disability insurance (sometimes called credit accident and health insurance) pays the scheduled monthly payments if the buyer becomes disabled. As with most contract terms, the cost of optional credit insurance must be disclosed in writing, and if the buyer wants it, the buyer must agree to it and sign for it.
A coverage that pays credit card debt in the event of death, disability or loss of employment.
Pays your monthly installments if you have a loan, or a percentage of your credit card debts for a set period of time, if you can't work or are made redundant.
The guarantee to manufacturers, wholesalers, and service organizations to pay for goods shipped or services rendered.
An insurance policy (such as life, disability, or unemployment) that pays the lender the balance of the loan if something happens to the borrower before the loan is paid off. Sometimes the lender adds the entire price of the policy to the amount you are borrowing and this is very expensive because you pay interest on that amount.
Coverage against unforeseen losses caused by a failure of a debtor to pay a creditor the funds owed for goods/services provided on credit.
Insurance on a debtor in favor of a lender intended to pay off a loan or the balance thereon if the insured dies or is disabled (usually called "CREDIT LIFE" policy).
See Commercial Credit Insurance.
Debtor insurance for policy holders that allows creditors to be paid off on a balance that is due on a loan in the event that the policy holder becomes disabled.
Coverage that pays off an outstanding loan in the event of the policyholder's death and/or makes loans payments if the policyholder is disabled.
A guarantee to manufacturers, wholesalers, and service organizations that they will be paid for goods shipped or services rendered. Applies to that part of working capital which is represented by accounts receivable.
A policy that pays off the card debt should the borrower lose his job, die or become disabled.
Credit insurance pays or pays off credit card debt should the borrower be unable to pay the debt as a result of the loss of employment, death or disability.
Credit insurance protects a business against bad debts resulting from its customers' inability to pay. Insurers are selective about which businesses they will cover, and the minimum premium can amount to $25,000.
an insurance policy that pays off an outstanding debt in the event of the policyholder's death or if insured is disabled Return to Menu
A policy held by a client which protects the client against losses due to bad debts.
Insurance purchased by the borrower that is offered by or through the lender that will repay a portion or the entire loan in the event of death or disability of the insured.
Insurance issued to a creditor to cover the health or life of a debtor for an outstanding loan. Credit disability insurance is payable if the debtor becomes disabled, credit life insurance is payable if the debtor dies. If the debtor becomes disabled or dies prior to repayment of the debt, the policy will pay the balance of the amount of debt outstanding. The face value of credit life insurance policy decreases in proportion to the reduction in the loan amount until both equal zero.
A form of guarantee to manufacturers and wholesalers against loss resulting from default on the part of debtors.
Health, life, accident, or dispurtion of income insurance designed to pay the outstanding balance of debt.
Health, life, accident, or disruption of income insurance designed to pay the outstanding balance on a debt.
Insurance in case your customer fails to pay the invoice. You receive payments for your bad debts up to pre determined limits.
The insurance of accounts receivable, within certain limitations, against loss through insolvency or failure of a customer to pay. Such insurance does not usually provide for "normal" credit losses.
If a borrower dies or becomes unemployed, credit insurance pays the outstanding loan balance. Credit insurance is much more expensive when it is added to the loan amount than when a consumer pays for it on a monthly basis outside of the loan, because interest is charged on the amount.
Commercial coverage against losses resulting from the failure of business debtors to pay their obligation to the insured, usually due to insolvency. The coverage is geared to manufacturers, wholesalers, and service providers who may be dependent on a few accounts and therefore could lose significant income in the event of an insolvency.
A form of insurance designed to protect against default by a debtor.
This is completely optional insurance. There are many types, including credit life, credit disability, credit unemployment (loss of income), credit property, etc. They are supposed to pay your mortgage payments or pay off all or part of the mortgage if you meet the conditions of the policy-for example, credit life is designed to pay in the event of the mortgage holder's death. Credit insurance can be purchased from the lender either as: (1) a monthly charge that is added to each monthly mortgage payment or (2) as a lump sum that is charged upfront and is generally added to the amount of your loan.
Insurance that pays any outstanding credit balance in the event of difficulty such as the loss of a job, illness, disability or death. The amount paid is usually either the minimum repayment plus interest each month or the full amount outstanding.
Optional insurance that pays the scheduled unpaid balance if you die or scheduled monthly payments if you become disabled. As with most contract terms, the cost of optional credit insurance must be disclosed in writing, and if you want it you must agree and sign for it.
Commonly such policies cover exports whereby an exporter may claim on the insurance in the event of non-payment. Such insurance is available from private and government insurers.
Optional coverage that pays off the balance of an outstanding loan in the event you become disabled, unemployed or die. Exact coverage depends on the particular policy. Variations include credit health or disability (pays if you get sick or become disabled) and credit unemployment insurance (pays if you involuntarily lose your job). Usually offered with credit cards, auto loans and mortgages.
An insurance product that pays the principal of a debt upon the death or other specified event of the insured.
Insurance a lender requires a borrower to purchase to cover the loan. If the borrower dies or becomes disabled before paying off the loan, the policy will pay off the remaining balance. Federal and state consumer protection laws require the lender to disclose to existing and potential borrowers the terms and costs of obtaining credit insurance because it can affect the terms of the loan.
An insurance policy that pays off credit card debt if the borrower loses his or her job, dies or becomes disabled. The structure of protection for a revolving credit card debt is calculated each month to cover only the debt that existed at the last billing cycle.
Insurance that pays a benefit equal to part or all of the amount of unpaid debt under a credit transaction if the insured borrower dies or becomes disabled.
An insurance policy that pays off debts should the borrower lose their job, die, or become disabled.
Insurance issued to creditors as protection against losses on outstanding loans due to the death or disability of the debtor.
Credit Insurance is an insurance policy associated with a specific loan or line of credit which pays back some or all of any money owed should certain things happen to the borrower, such as death, disability, or unemployment.