What is group credit insurance?
Group loan insurance is a type of insurance provided to creditors - businesses that provide customers with credit cards or loans - which help pay for outstanding debts. It is just like life insurance, because companies usually apply if debtors die but may also cover disability or unemployment. Unlike credit insurance, which applies to only one debtor, group credit insurance covers a whole group of debtors. Most creditors will move some or all insurance costs for customers that appear on a loan or credit card as a small fee. Without having this insurance, creditors would have to sue another related debtor for money or lose money on an outstanding debt. Creditors earn money through interest -billed interest and credit cards, and if outstanding debts cannot be paid because the debtor is dead or deactivated, creditors may lose substantial incomes. To alleviate this, most creditorsHe uses group credit insurance. This policy usually applies to the debtor dies or becomes seriously affected and cannot work on making money. Some policies may also relate to the debtor who can no longer pay the creditor due to prolonged unemployment, but that is rare.
in a wide sense is credit insurance in two main politicians. Individual credit insurance is taken against one person and is commonly used by small creditors who do not have many debtors. Group loan insurance covers a whole group of debtors. Group policy coverage usually goes so far, whether the limit is based on the number of people or the total amount of their debt, so creditors can require several policies.
Loan Group Insurance tends to be expensive, especially if people with high abrasion are covered so creditors tend to compensate some or allCustomers' costs. For example, creditors can charge a small credit card fee, so the debtor pays for HIS or its insurance costs. Some creditors do it while others don't, but the fee is common because creditors usually don't like losing money.
Without a group loan insurance, it may be difficult for creditors to raise money for outstanding debts and loans. Creditors usually sue the next relatives if they exist and are able to pay. In the worst case scenario, when no one is suing or gathering, creditors lose their excellent debt. Creditors usually cannot afford many such cases, so group credit insurance is common.