Who is the owner and beneficiary of the credit insurance policy?

In a credit insurance policy, the creditor is typically both the owner and the beneficiary of the policy. This type of insurance is designed to protect lenders by paying off the borrower's debt in the event that they are unable to make payments due to death, disability, or other qualifying circumstances.

By having the creditor as the owner, they maintain control over the policy and can make decisions about its terms, including any modifications. As the beneficiary, the creditor receives the payout directly if a claim is made, ensuring that their financial interests are safeguarded in case the borrower defaults or passes away.

This relationship is established to mitigate risk for lenders and facilitate the extension of credit, making it an integral part of many lending agreements. The other options, while associated with the insurance industry, do not play the same critical roles in relation to credit insurance policies as the creditor does.