{"id":352576,"date":"2017-06-05T13:43:39","date_gmt":"2017-06-05T18:43:39","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/insurance\/credit-insurance.html"},"modified":"2023-12-26T11:24:29","modified_gmt":"2023-12-26T16:24:29","slug":"credit-insurance","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/insurance\/credit-insurance.html","title":{"rendered":"Credit Insurance"},"content":{"rendered":"\n
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Credit Insurance<\/h1>\n
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\n By Oni Harton, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Credit insurance is debt cancellation coverage sold by financial institutions. Lenders, including banks, credit unions, auto dealers, and finance companies, sell credit insurance. A credit insurance policy protects lenders from non-payment of the loan amount owed under a credit agreement.<\/p>\r\n

Credit insurance<\/a> covers the borrower’s payment obligation when a borrower fails to pay a debt. A borrower can purchase credit insurance for the benefit of the lender. Purchasing credit insurance can minimize the credit risk for the policyholder and protect the borrower’s credit or family from liability.<\/p>\r\n

In general, credit insurance is typically offered as an extra service by lenders to borrowers who apply for:<\/p>\r\n