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CREDIT CARD INSURANCE
Many of the major credit card companies offer different types of insurance, all of which offer some sort of protection if you can not pay your bill. Some people utilize these insurances, while others do not. Before committing to a credit card insurance plan, make sure you understand what you are getting yourself into. Below is information that will help you understand how the different types of credit card insurance works.

Types of Plans

Credit Property Insurance - It is very common for this type of insurance to come with your credit card. It will protect you from stolen or damaged products purchased with your credit card.

Credit Life Insurance - This type of insurance will pay for an outstanding credit card balance when you die. Please note that your credit card issuer will only pay the debt if you have beneficiaries listed on your plan.

Credit Involuntary Unemployment Insurance - If you are ever laid-off, you obviously are going to have a hard time paying your bills since your full income is no longer coming into the household. This type of credit card insurance will pay the monthly minimums of your credit card while you are unemployed. However, this plan will not pay for any purchases that are made after you are not working.

Credit Disability Insurance - Suppose you suffer a medical disability. This type of insurance plan will pay your monthly credit card minimums in case this happens. Please note that this payments will only be made for predetermined amount of time.

There are several disadvantages and advantages to credit card insurance. Having insurance is a benefit in case you ever get sick or lose your job. However, the payment periods may not be long enough for you get better, or to find new employment. Another major disadvantage to credit card insurance is that if you decide that you will have to buy a separate insurance policy for each credit card you have. Having to purchase more than policy is going to be costly.

If you do decide to buy a credit card insurance policy, make sure you understand exactly how is works before committing. Make sure you are clear as to what to expect if you neglect to make a payment prior to your job loss. Is eligibility still possible?

Understanding the rates is also important. You need to determine how much it is going to cost for coverage of a certain time frame. Will the rates every change? Are you able to terminate the policy at any time? Bottom line, make sure you understand exactly how much you policy is going to cost and what all of the terms and conditions are.

If you have any questions, please contact us.


Related Insurance Info:
- Auto Insurance
- Private Mortgage Insurance


 

 

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