Final answer:
Credit health insurance helps cover loan payments in cases where the debtor dies or becomes disabled, protecting both debtor and creditor from financial hardship.
Step-by-step explanation:
Credit health insurance generally provides payments on loans in the event that a debtor is unable to make payments due to disability or death. Specifically, option C) provides payments on loans if the debtor dies and option D) provides payments on loans that become due while the debtor is disabled. Many types of insurance exist to protect both personal and financial investments.
For example, there's health insurance for medical care, car insurance for accidents, property insurance for damage or theft, and life insurance to support a family after the insured individual's death. Similarly, credit health insurance is meant to safeguard both the debtor and creditor from unforeseen financial burdens that arise from the incapacitation or death of the debtor.