Creditor insurance can cover monthly credit repayments if a consumer cannot work due to illness, disability, job loss or death. It is not a substitute for health and disability insurance as they cover different risks. It is also not a free benefit on most credit cards; it is a separate insurance product that consumers can purchase.

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Creditor Insurance

Question 82

Multiple Choice

Creditor insurance

A) is a free benefit on most credit cards.
B) can be used to pay off all debt when a creditor becomes unemployed.
C) is a good substitute for health and disability insurance.
D) can cover monthly credit repayments if a consumer cannot work.

Correct Answer: