The insurance of credit is an insurance policy of insurance related to a loan or at a specific credit limit which pays some or all behind all the moneys due so certain things arrive to the borrower, such as death, the incapacity, or unemployment.

The costs (called a "premium") for this are usually re-examined monthly charged, according to which had balance, and according to the use of the loan or the line, could the almost double cost of him (on the intelligent use of opposite spectrum could avoid must pay the premium of the whole almost).

The sale of the insurance of credit is discussed because it is almost always cheaper so that an individual gives up the insurance of credit, and has in the place a temporary policy of life insurance or insurance of disability to cover the balance. The reason is that the insurance of credit is resulting guarantee, no matter if a person would be differently insurable or not. Thus the rates offered must reflect this, and are worse than if an insurable person in good health or another wise were with the insurance of purchse on their clean.

Moreover, there is a practice more discussed much (called the insurance of simple credit of premium), usually related to the secondary industry of loan principal, to charge the premium only one time at the beginning of the loan. For example, by charging 5.000 dollars per hour of a mortgage refinance, which is usually financed (additional with all the quantity of loan) as an element of the loan. This is considered very bad by criticisms, since doing this is only cheaper if one is sure that one will remain with the loan for always and not to refinance. Criticisms dispute the majority of the people do not carry out this and do not lose money while refinancing again, loser of this fact the advantages of the insurance of credit.