CREDIT INSURANCE
Credit insurance is a type of insurance policy purchased by a borrower that pays off one or more existing debts in the event of a death, disability, or in rare cases, unemployment.
Features of a Credit Insurance Policy
Financial Security
Credit insurance protects the companies against customer defaults.
Insolvency Risk
It covers the risk of loss due to the insolvency of their customers.
Protect Debtors Default
It covers Protracted Default or Delayed Payment by the debtors.