Credit insurance can cover monthly credit repayments if a consumer cannot work due to job loss, disability, or death. It is not a substitute for health and disability insurance and is not always a free benefit on credit cards. Additionally, credit insurance only covers credit repayments, not all debt.

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Credit Insurance

Question 53

Multiple Choice

Credit 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: