Although credit insurance is not a new concept at all, it has recently been touted as an added bonus by many registered financial services providers. This is mainly a marketing gimmick due to the global recession as people around the world are being retrenched. How it works is, when a person takes out a loan, albeit a mortgage, vehicle finance, credit card, personal loan or even a clothing account, the financial services provider offers the client credit insurance for a small monthly premium to pay for the debt in the event that the person is disabled, retrenched, diagnosed with a terminal disease or dies. Usually the monthly premium for credit insurance is so minimal that people take out the insurance without a second thought. Although this may be a convenient way to insure your credit, it is handy to know that there are insurance companies that actually specialise in credit insurance. Taking out a policy with them and insuring all your debt under one policy may save you a substantial amount in monthly insurance premiums.