Indiana Credit Insurance
When Indiana residents purchase something on credit or borrow money from a lender, they will
probably be asked if they want to purchase credit insurance. This is insurance which will pay your
debt if you die, become disabled, or are involuntarily unemployed.
Credit insurance can be expensive when it is bought directly from the creditor. In some cases, you
may already have provisions in your homeowners or other insurance to cover your owed debt, so it is always
best to review your current insurance before paying for additional credit insurance. If after reviewing your
current coverage you still believe that you need credit insurance, you should consult your own
insurance agent who may be able to offer you similar coverage at lower rates.
Under most circumstances, a creditor cannot require you to purchase its credit insurance or offer you a lower interest rate if you do purchase this insurance.
Since credit insurance would involve an additional charge, the decision to purchase the insurance is completely voluntary.
If you don't need or want the insurance, don't purchase it.
In some cases a creditor may require credit insurance. If this is the case, the premium must be included in the finance charge and
reflected in the Annual Percentage Rate.
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