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LSDefine

Simple English definitions for legal terms

credit insurance

Read a random definition: United States person

A quick definition of credit insurance:

Credit insurance is a type of insurance that a borrower buys to protect their lender from losing money if the borrower can't pay back their loan. If the borrower becomes unable to pay due to things like disability, death, or unemployment, the credit insurance company pays off the debt. This helps protect the borrower's credit and their family from having to pay the debt. Credit insurance is usually offered by credit card companies or lenders when someone applies for a loan or credit card. There are five types of credit insurance, including credit life insurance, credit disability insurance, credit unemployment insurance, credit personal property insurance, and trade credit insurance. The cost of credit insurance is added to the borrower's monthly bill or included in the total cost of the loan.

A more thorough explanation:

Credit insurance is a type of insurance that a borrower can purchase to protect their lender from financial loss if the borrower becomes unable to repay their debt due to insolvency, disability, death, or unemployment.

For example, if someone takes out a loan and then becomes disabled and unable to work, their credit insurance company will pay off the remaining balance of the loan so that the borrower's credit score is not negatively affected and their family is not held liable for the debt.

Credit insurance is often offered as an additional service by credit card issuers or lenders when someone applies for a loan or credit card. The cost of credit insurance is usually added to the borrower's monthly bill or included in the total cost of the loan.

There are five types of credit insurance:

  1. Credit life insurance
  2. Credit disability insurance
  3. Credit unemployment insurance
  4. Credit personal property insurance
  5. Trade credit insurance/family leave or leave of absence insurance

Credit insurance is also known as accounts receivable insurance, bad debts insurance, payment protection insurance, or credit protection.

credit instrument | credit report

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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