Credit health insurance is (1) insurance designed to cover a borrower’s debt to a creditor receiving benefits under a debt repayment policy if the borrower becomes disabled or dies in an accident. Credit insurance can be issued in the form of an individual policy for one borrower or group coverage for a number of debtors with the lender as the main insured. when the debtor becomes incapacitated. (3) Cover given to the creditor for the life of the debtor, so that if the debtor becomes incapacitated, the insurance policy pays the balance of the debt to the creditor.