CREDIT INSURANCE - TIME TESTED ANTIDOTE TO FINANCIAL INSECURITY WHEN MAKING HOLIDAY PURCHASES

Content

Contact: William F. Burfeind
Executive Vice President
(312) 939-2242

Chicago, December 02, 2008 – As consumers worried by the shaken and shaky economy make their gift purchases on credit this holiday season, credit insurance is an attractive option to ease financial insecurity and worry, the Consumer Credit Industry Association (CCIA) advised today.

“This holiday shopping season is like none we have experienced in many years because of the financial crisis and the recession in which the nation and all of us find ourselves and it means added worry for many consumers,” observed CCIA Executive Vice President William F. Burfeind. “Credit insurance is a sound option for consumers worried today about personal finances and concerned about future payment of credit they are using this holiday season to make their gift purchases,” he said.

He noted that Mississippi Commissioner of Insurance Mike Chaney recently offered this advice to consumers in the context of overall sound personal financial planning, “With today’s volatile economy, smart management of your credit is a vital step in your financial survival.”

Burfeind observed that wise use of credit is an important part of sound financial and estate planning and management that goes hand in hand with sound investments, saving for the future and sound insurance protection.

“Credit insurance or debt cancellation and suspension contracts are proven credit management and protection measures consumers can add to their credit cards or use on other borrowings to enhance overall personal financial management, often as a short-term protection at a viable cost,” he said.

“In this very trying and uncertain economic period, credit insurance and also debt cancellation or suspension contracts are time-tested ways that consumers can be sure their credit obligations will be paid in case a covered event takes place that would interfere with their ability to repay debt,” said Burfeind.

Credit insurance or related debt cancellation products are almost always available to consumers on their credit card balances at fair and reasonable rates set by each state with premium payments made part of the monthly billing and offering a package that can include life, disability and unemployment protection.

Credit insurers provide credit life insurance to repay debt if the insured borrower dies. Credit disability insurance repays insured debt if the borrower becomes sick or disabled. Involuntary Unemployment Insurance makes insured debt payments for a specified period of time in the event of involuntary loss of employment. Credit property insurance insures property purchased with a consumer loan or insured property that secures a consumer loan.

Debt cancellation and debt suspension contracts are non-insurance agreements between consumers and lenders that provide similar protections for repayment of debt.

Based in Chicago, the 120-member CCIA is a trade association of insurance companies and other financial service providers selling or servicing consumer credit insurance, credit related lines of insurance, and other consumer credit protection products including debt cancellation and suspension contracts or agreements.