Last Updated: May 9, 2016
Credit insurance is insurance sold with a credit transaction which promises to pay all or a portion of the outstanding credit balance if a claim is filed. For example, you may be offered insurance that will pay off your loan if you are injured or lose your life. If it is credit property insurance, it usually pays the lesser of the value of the item or the balance of the loan. If you decide to purchase credit insurance, the cost is usually added to the balance of your credit transaction.
Fact Sheet on Credit Insurance for further information.