The risks of people are increasing day by day. So, in order to protect themselves from the risks, people are opting for the Insurances. For satisfying the needs of the people many insurance companies have come into existence for offering many types of insurances. Out of which, Credit Insurance is one of the main insurance which is needed for both the businesses as well as for the individuals. In the cases where the person applies for the mortgage or the personal loan then this type of insurance will be useful.
If the person is unable to make the payments for the applied loan, then in such events credit insurance will be useful. Generally, there are two types of credit insurances. They are consumer credit insurance and the business credit insurance.
In the cases if the unfortunate incident occurs to the consumer or borrower who had applied for the loan, the consumer credit insurance will help a lot. The incident may be any thing i.e., death of the borrower or the borrower loses a job or the borrower becomes disabled. Consumer can apply credit insurance for any type loan to get protection. Generally, the different types of loans which are given insurances are the home loans, auto loans, credit card debt, loans from finance company,. Even if the insurance is brought by the consumer or the borrower, finally the financed company will get the benefit using the insurance.
Here in the trade or business credit insurances, the companies risk will be paid apart from the covering the individuals. Here, the insurance company will pay a percentage of an invoice which the business entity is unable to pay.
