Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Credit Insurance shopping experience:
1. Compare - without doubt the biggest advantage that the Credit Insurance offers shoppers today is the ability to compare thousands of Credit Insurance at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Credit Insurance? Wrong! If the Credit Insurance is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Credit Insurance then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Credit Insurance? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Credit Insurance and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Credit Insurance wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Credit Insurance then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Credit Insurance site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Credit Insurance, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Credit Insurance, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
Credit Insurance is an insurance policy associated with a specific loan or line of credit which pays back some or all of any money owed should certain things happen to the borrower, such as death, disability, or unemployment.
The costs (called a "premium") for this are usually charged monthly, depending on the balance owed, and depending on the usage of the loan or line, could almost double the cost of it (on the opposite end of the spectrum, clever usage could avoid having to pay almost any premium at all).
The sale of credit insurance is controversial because it is almost always cheaper for an individual to forgo credit insurance, and instead have a term life insurance or disability insurance policy to cover the credit balance. The reason is that credit insurance is guaranteed issue, no matter if a person would otherwise be insurable or not. So the rates offered must reflect this, and be worse than if a healthy or otherwise insurable person were to purchase coverage on their own.
In addition, there is an even more controversial practice (called single premium credit insurance), usually associated with the sub prime lending industry, of charging the premium only one time at the beginning of the loan. For example, charging 5,000 dollars at the time of a mortgage refinance, which is usually financed (added to the total loan amount) as part of the loan. This is considered very bad by critics, since doing this is only cheaper if one is sure that one is going to stay with the loan forever and not refinance. Critics contend most people do not realize this and lose money by refinancing once again, thereby losing the benefits of the credit insurance.
History
Credit Insurance was born at the end of nineteenth century, but it was mostly developed in Western Europe between the First World War and Second World Wars. Several companies were founded in every country, some of them also managed the political risk to export on behalf of their State.
Credit Insurance is a term used to describe both Trade Credit Insurance and Credit Life Insurance.
Credit Life Insurance is a consumer purchase, often sold with a big ticket purchase such as an automobile. The insurance will pay off the loan balance in the event of the death or the disability of the borrower. Although purchased by the consumer/borrower, the benefit payment goes to the company financing the purchase to satisfy a debt.
Trade Credit Insurance is purchased by business entities to insure their accounts receivable from loss due to the insolvency of the debtors. This product is not available to private individuals.
Over the '90s, a concentration of the
Trade Credit Insurance market took place and four big companies became the main players of a market focused on Western Europe, but rapidly expanding towards Eastern Europe, Asia and the Americas.:
- Atradius. A merger between NCM and Gerling Kreditversicherung. Later renamed Atradius after it was demerged from the Gerling insurance group.
- Compagnie française d'assurance pour le commerce extérieur. Formerly a French government sponsored institution established in 1946, this company has now been privatised.
- Euler Hermes, merger of the two credit insurance companies of the Allianz Group.
Credit Insurance Providers
See also
External links
- ICISA - International Credit Insurance & Surety Association
- Learn About Credit Insurance Insurance history, definitions and types
Credit Insurance is an insurance policy associated with a specific loan or line of credit which pays back some or all of any money owed should certain things happen to the borrower, such as death, disability, or unemployment.
The costs (called a "premium") for this are usually charged monthly, depending on the balance owed, and depending on the usage of the loan or line, could almost double the cost of it (on the opposite end of the spectrum, clever usage could avoid having to pay almost any premium at all).
The sale of credit insurance is controversial because it is almost always cheaper for an individual to forgo credit insurance, and instead have a term
life insurance or disability insurance policy to cover the credit balance. The reason is that credit insurance is guaranteed issue, no matter if a person would otherwise be insurable or not. So the rates offered must reflect this, and be worse than if a healthy or otherwise insurable person were to purchase coverage on their own.
In addition, there is an even more controversial practice (called single premium credit insurance), usually associated with the sub prime lending industry, of charging the premium only one time at the beginning of the loan. For example, charging 5,000 dollars at the time of a mortgage refinance, which is usually financed (added to the total loan amount) as part of the loan. This is considered very bad by critics, since doing this is only cheaper if one is sure that one is going to stay with the loan forever and not refinance. Critics contend most people do not realize this and lose money by refinancing once again, thereby losing the benefits of the credit insurance.
History
Credit Insurance was born at the end of
nineteenth century, but it was mostly developed in Western Europe between the
First World War and Second World Wars. Several companies were founded in every country, some of them also managed the political risk to export on behalf of their State.
Credit Insurance is a term used to describe both Trade Credit Insurance and Credit Life Insurance.
Credit Life Insurance is a consumer purchase, often sold with a big ticket purchase such as an automobile. The insurance will pay off the loan balance in the event of the death or the disability of the borrower. Although purchased by the consumer/borrower, the benefit payment goes to the company financing the purchase to satisfy a debt.
Trade Credit Insurance is purchased by business entities to insure their accounts receivable from loss due to the insolvency of the debtors. This product is not available to private individuals.
Over the '90s, a concentration of the
Trade Credit Insurance market took place and four big companies became the main players of a market focused on Western Europe, but rapidly expanding towards Eastern Europe, Asia and the Americas.:
Credit Insurance Providers
See also
External links
- ICISA - International Credit Insurance & Surety Association
- Learn About Credit Insurance Insurance history, definitions and types
