Credit insurance is big business.
Credit insurance refers to a group of insurance products sold in conjunction with a loan or credit agreement. The products may be sold by credit card companies, auto dealers, finance companies, department stores, furniture stores or wherever loans are made and credit extended for the purchase of personal property. Credit Accident and Health, also known as Credit Disability, pays a limited number of monthly payments on a specific loan or credit card account if the borrower becomes disabled during the term of coverage. Credit Involuntary Unemployment pays a limited number of monthly payments on a specific loan or credit card account if the borrower becomes involuntarily unemployed during the term of coverage. Unlike the first three credit insurance products, credit property insurance is not directly related to an event affecting a consumer's ability to pay his or her debt.