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Securian Financial

Credit insurance

Mitigate risk while offering peace of mind for your borrowers

A recent finance company customer survey revealed that 72% of customers said they are “concerned” or “very concerned” about managing their day-to-day costs of living1. Would your borrowers be able to pay-off or make their loan payments if they were to experience a disability, involuntary unemployment or even death?

Credit insurance can help provide that peace of mind your borrowers want. If the unthinkable were to happen, they can feel confident those they love most will have the financial protection to help them get through a stressful time.

Credit insurance helps borrowers by:

  • Allowing them to reallocate funds for other needs
  • Protecting their credit rating
  • Reducing risk of default and loss of collateral

Helps your financial institution by:

  • Providing products your customers need
  • Reducing loan defaults and delinquencies
  • Generating non-interest income

Flexible product options to fit your institution’s needs

Credit insurance

Credit Insurance is a policy that is issued, and the benefit is paid, to the financial institution. It is available for installment loans, lines of credit, credit cards and certain types of real-estate secured loans.

Credit life insurance pays off or reduces the loan balance upon death of the borrower or co-borrower.

Credit disability insurance pays or reduces the monthly loan payment if the borrower or co-borrower were to become disabled.

Credit property

Credit property is designed to reduce or pay off the insured’s balance on a loan if the property is damaged or destroyed by a covered peril. This is non-deductible insurance coverage.

  • Personal property is available on a single or dual interest basis and protects collateralized property such as furniture, appliances and other household goods.
  • Single interest vehicle coverage provides physical damage coverage on private passenger vehicles for personal use for loss or damage caused by fire, theft or collision.

Single interest coverage protects only the insured lender’s interest in the collateral.

Dual interest coverage protects the insured lender and the insured borrower’s interest in the property.

Credit involuntary unemployment

This type of insurance provides a monthly benefit on both closed and open-ended consumer loans in the event of involuntary unemployment.

Collateral Plus/Limited Physical damage

Collateral Plus/Limited Physical damage provides physical damage coverage for private passenger automobiles, pickups, vans, boats and motorcycles. Additional coverage options are available with an endorsement for mobile homes, personal watercraft and recreational vehicles.

An eligible claim would provide a benefit for the lesser of the following options: loan balance, repair cost, coverage amount or actual cash value and is payable to both the financial institution and the borrower.

Depending on the loan type, Securian Financial offers two types of payment options:

Single premium

Premium is based on loan amount, paid upfront at time of loan and the fee may be refundable if paid-off early.

Monthly outstanding balance

Monthly premium is based on the outstanding balance each month and is “pay as you go” and added to the monthly payment.

Contact info

Existing policy assistance

Please refer to your current statement for contact information.

Let us help protect your members

Start a conversation to learn more about the benefits a strategic relationship with us can provide you and your members.

Contact our sales team

  1. Securian Financial-sponsored research study with KWP Consulting, LLC, 2018.
DOFU 10-2021
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