Credit insurance comes in several different forms:

credit life insurance - the outstanding balance is paid in the event of your death. credit accident and health insurance - monthly credit payments are made for you during periods when you are unable to work due to accident or illness. Credit unemployment insurance - monthly credit payments are made for you during periods when you are unemployed.

Your acceptance or rejection of credit insurance normally is not used as a factor by the creditor in deciding whether to extend credit to you.