Credit Accident and Health pays a scheduled monthly benefit for the debtor during the period of total disability caused by accident or sickness. 

Accident and Health is for a monthly benefit, usually equal to the monthly payment on the debt or a predetermined maximum, whichever is less. 


  • Non-Retroactive (Exclusion) Accident and Health – This plan provides that the benefits begin at the conclusion of a waiting period, usually 14 or 30 days.

  • Retroactive Accident and Health – This plan provides that after a minimum waiting period, usually 14 or 30 days, benefits are payable retroactively from the first day of disability.



    • There is no Level Term Accident and Health

    • Joint Accident and Health can be written for the joint debtor (may not be available in all states)



Disabilities not covered:  Benefits are not paid for disability resulting from elective abortion, normal pregnancy, an intentionally self-inflicted injury, foreign travel or residence, flight in a non-scheduled aircraft, war or military service, pre-existing illness, disease, or condition for which medical diagnosis or treatment within the 6 months preceding the effective date as shown in the schedule, and which causes loss within 6 months following the effective date as shown in the schedule.



Single premiums are collected and remitted identically to Credit Life premiums.  Rates vary according to state regulations.  Single premium rates are usually quoted in cost per $100 of insurance coverage for 12 months, 24 months, 36 months, etc. For example, $2.20 for 12 months, $3.00 for 24 months, $3.80 for 36 months, for the 14 day retro program.


Note:  Credit Accident and Health – Pre-existing conditions – A pre-existing condition is defined as a medical condition which occurred (normally 3-12 months) prior to the taking of the application for insurance and which causes loss within a specified time following the effective date of insurance coverage (normally 3-6 months).  Pre-existing conditions are either paid or excluded.  If paid, the state filed premium rate is typically higher.




  • Normally, 18 through 65 years of age.

  • Normally, the maximum is $1,000 monthly payment benefits.

Not to exceed term of loan or maximum of 84 months, whichever is less.




  • Monthly scheduled loan payment due creditor is made during disability period of insured.

  • Exact amount of insurance, no excess coverage.

  • Reasonable cost – pennies per day.

  • No disruption of his/her existing insurance program.

  • No amount of Life insurance will make the payments for a disability condition.