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Credit Life

Credit assurance can benefit the life office as an important source of protection business, and normally consists of life and disability assurance, with dread disease cover becoming more common. As credit assurance is sold through the lending institution's branches and directly through stores and dealers the life assurer increases its premium volume with little need to increase its agency force. This is a very efficient way of marketing insurance as it makes use of the lender's often vast distribution outlets.

Credit assurance is a high volume, low premium operation that needs specialist knowledge and efficient systems to run smoothly. It can be very profitable to both the life assurer and the lending institution when managed and administered skillfully.