Which type of insurance may include guaranteed protection of assets?

Credit insurance provides a form of guaranteed protection for assets by safeguarding lenders against the risk of a borrower defaulting on a loan. If a borrower becomes unable to repay the debt due to unforeseen circumstances such as illness, unemployment, or death, credit insurance ensures that the outstanding balances are paid off, protecting the lender’s financial interests.

This type of insurance is particularly relevant in consumer finance, as it can secure personal loans, mortgages, or credit card debts. By covering these potential losses, credit insurance effectively mitigates the risk associated with lending and helps preserve the lender's assets, allowing them to maintain stability even in the face of borrower defaults.

In contrast, property insurance primarily focuses on protecting physical assets like homes and vehicles from risks such as fire, theft, or damage. Casualty insurance generally deals with liabilities and does not directly protect assets in the same way. Health insurance is intended for covering medical expenses and does not provide protection for personal property or financial liabilities.