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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.
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Auto Insurance
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