Credit Insurance

"Credit insurance is a form of insurance coverage that is available to both individuals and businesses. The coverage provides protection in the event that the policy holder is rendered unable to pay on outstanding debt due to any incident that is covered in the terms of the policy. Common factors that may invoke the provisions contained within a credit insurance policy include the loss of a job, death of the insured party, or an accident that disables the policyholder.

The protection against losses that is provided by credit insurance is beneficial to both the debtor and the lender. For the debtor, there is the peace of mind that any debts that are currently outstanding will be settled. At the same time, the lender is assured of receiving payment in full even if the debtor should die." (wisegeek.com)