Mansell, Engel & Cole

What does credit insurance entail and protect against?

At least a portion of the answer to the above-posed blog headline can be supplied from a single sentence in our immediately preceding post relevant to all types of insurance. We noted in our October 12 entry at Mansell, Engel & Cole that “the essential idea and thrust of insurance is clear enough: its purpose is to protect against loss and risk.”

Credit insurance is a small though significant subset in the broad insurance universe, being applicable to a targeted audience with quite focused needs. Typically, an individual in Oklahoma or elsewhere takes out a credit insurance policy to safeguard against the downside of something like a job loss or long-term disabling condition. When such a “triggering event” occurs, policy protections should kick in that help pay ongoing bills and keep creditors at bay.

Such a policy can of course be beneficial for some people. Arguably though (and as stressed in one online overview of the subject matter), credit insurance can be notably expensive and simply duplicative of existing coverage. Notably, products like life insurance and disability insurance policies can provide the same sort of protection, and at a comparatively discounted price.

In any event, a credit insurance policyholder likely has one thing centrally in mind when a triggering condition arises, namely, prompt and good-faith payment from an insurer.

Sadly, that does not always occur. The above article stresses that, “Unfortunately, sometimes disputes can arise with your insurance company about the amount of your premiums or the extent of your coverage.”

An experienced pro-policyholder insurance attorney can be of immediate and proven assistance in any case where good-faith contractual performance is not reciprocated by like conduct forthcoming from an insurer.

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