Credit insurance policies protect buyers if they can’t make the payments on their debt. Even though it sounds similar to other insurance policies, it works differently. You don’t receive anything if you file a claim. Instead, payments go directly to the creditors, ensuring payments remain current.
Credit Insurance Protects You in the Event of Loss of Income
If you’ve lost a job, making the monthly payments on your debt can become impossible. Maintaining a credit policy will protect your credit score, even if you lose income.
So, losing a job won’t mean your credit score has to drop. Many lenders offer you the opportunity to sign up for a policy when applying for credit. But, you can also get coverage through a third party.
Types of Credit Insurance
There are several policy types to choose from when getting coverage. Disability only covers missed payments if you become disabled. Also, they typically cover a limited number of them.
Another type would be unemployment coverage. When you lose a job, it’ll cover any monthly payments until you find another one.
How Much Does It Cost?
The amount it costs to get a policy depends on what you’re covering. If the loan is larger, it will cost more to obtain a policy.
What Are the Benefits?
If you don’t have credit insurance, a credit policy might be worthwhile. It would protect you and your credit score if there were a loss of income. So, you’d have a little less to worry about as far as meeting your obligations.
Trade Risk Group provides a wide variety of credit policies through Yardley, PA. Visit our website at traderiskgroup.com to learn more about our products.
