There are four main types of credit insurance: credit life insurance, which pays off all or some of your loan if you die. Credit disability insurance, also known as accident and health insurance, which makes payments on the loan if you become ill or injured and are unable to work. Involuntary unemployment insurance, also known as involuntary loss of income, which makes a persons loan payments if they lose their job due to no fault on their part, such as being laid off. The fourth is credit property insurance, which is instrumental in protecting personal property used to secure the loan if destroyed by events like theft, accident, or natural disasters. Before deciding to buy credit insurance from a lender, you must consider your needs, options and the rates you will be required to pay. Read the rest of this entry »
When you’re not sure your clients will pay what they owe you, managing your company’s cash flow can be a difficult task. However, rather than taking a chance, consider credit insurance to help you handle your company’s cash flow. In the case of business companies, credit insurance will essentially cover the business’ entire turnover–wherever it may be trading–and will include political risks. Read the rest of this entry »
Credit insurance contracts, primarily, provides the anticipate and prevent risks associated with business transactions and trade. Exceeding simple insurance products, credit insurance companies offer credit support to companies throughout the development of their businesses, while providing them with the means to protect the monetary flow or foresee risks involved with doing business with their buyers of customers. Read the rest of this entry »
Credit insurance coverage is available to both individuals and business organizations. This form of insurance coverage provides protection to the individual or company policy holder, in the event they are unable to pay an outstanding debt due to an incident that is covered within the terms of the policy agreement. Common factors invoking the provisions contained within a credit insurance policy include job loss, death of the insured party, or and accident that results in the disabling of the policyholder. Not only is the protection against losses provided by credit insurance beneficial to the debtor, it is also equally beneficial to the lender. Debtor will know that any debts outstanding will be settled, while lenders, rest assured that they will receive payment in full even if the debtor dies. Read the rest of this entry »
Trade credit insurance, also known as business credit insurance is purchased by business entities to protect their accounts receivable from loss due to the insolvency of the debtors; this form of credit insurance, is not available to, not will it benefit, private individuals. Premiums, or the costs for this form of insurance, are usually charged monthly and are calculated as a percentage of sales of that month or as a percentage of all outstanding receivables. Read the rest of this entry »
