Credit Insurance & Debt Protection

Insurance / Services

Protect both borrower and lender from unforeseen loss due to death, disability, or involuntary unemployment.


  • Life: If the borrower dies, the loan is paid off up to the loss limit
  • Disability: If the borrower is unable to work due to injury or illness, the monthly loan payment is made on the borrower’s behalf, up to the monthly loss limit.
  • Involuntary Unemployment: If the borrower becomes involuntarily unemployed, the monthly loan payment is made on the borrower’s behalf, up the monthly loss limit.
  • Covers a wide variety of open-end and close-end consumer loans, such as Autos, Credit Cards, Personal Loans and Home Equities.
  • Runoff options available for existing programs so the lender has a single point of contact for all future claims and servicing needs.


  • Borrower peace of mind: covered loss will not jeopardize the family budget.
  • Make better loans: protect against common causes of loan charge-off.
  • Lender generates non-fee income.

Optional Coverages

  • Life (+)/Enhanced Life, including Terminal Illness, AD&D, Hospitalization, etc.
  • 14-day/30-day Retro or 14-day/30-day Waiting Period (Non-Retro)
  • Blended rate or separate Single/Joint rates
  • Whole Monthly Payment
  • Lump Sum Total and Permanent Disability
  • Customized coverage/benefit packages 

What Is Credit Insurance?

Credit Insurance is an optional insurance product filed with the State Insurance Department that allows borrowers to insure against unforeseen loss. Credit Insurance is a three-party contract between the insurer, the lender, and the borrower. The insurer provides a policy from which a borrower may purchase a certificate through their lender/agent.

The insurer assumes all risk of loss. The lender earns service fees for facilitating the program, and licensing may be required depending on State regulations. Retail rates are provided by the insurer, according to State regulations.

What Is Debt Protection / Debt Cancellation?

Debt Protection is an optional lending product (not insurance) that allows borrowers to protect against unforeseen loss. Debt Protection is a two-party contract between the lender and the borrower.

The borrower may purchase a loan addendum from their lender whereby the lender agrees to cancel all or a portion of the borrower’s debt if certain loss conditions are met. The lender assumes the risk of loss in cancelling debt, then transfers that risk to an insurer via a Contractual Liability Policy. The insurer charges the lender wholesale rates through the Contractual Liability Policy, then the lender selects a markup for commission that determines the retail rate.