Do You Need Credit Card Insurance?
There are several types of insurance in this world, and finding the right insurance policy for you that will cover you in all the risks you entail by living your everyday life is a difficult feat to accomplish. Still, having the right knowledge about the many different kinds of insurance policies out there will help you to decide which is best for you.
Having credit cards automatically subscribes you for a certain amount of risk. The biggest risks you take involve your money… how much you will be able to keep, how much you will lose, and how much you will not have when the world is demanding it of you and demanding to have it now. So what kind of protection can you receive for these kind of risks, that will allow you to stay within a reasonable debt range and keep a good credit score if your ability to pay your credit card bills suddenly goes down the drain? Credit card insurance is one option, and depending on who you are and what kind of insurance protection you need, it may be just the thing for you.
Types of Credit Card Insurance
Credit Property Insurance
This type of insurance applies when you have bought something with a credit card that you are still paying for, and suddenly one day that thing gets destroyed. Because you have credit property insurance, your debt on that object is cancelled and you no longer owe anymore money on that object. This is great for people who buy expensive things with credit cards that do not have a warranty.
Unemployment Credit Insurance
This is applicable when the card holder is laid off, or unexpectedly removed from employment. It only applies until the card holder finds other employment, and it does not include incidences when the unemployment was voluntary. Because you are unwillingly unemployed, the credit card company will pay the amount you owe on your minimum monthly payment until you can find another job.
Disability
This type of insurance is also only active for a short period of time. It is applicable only when you are medically disabled, and will no longer be active when your disability is over. This will also pay the monthly payment on your credit card, and applies only to existing debt, not to purchases made after the disability occurs.
Credit Life Insurance
This is the kind of insurance that is most helpful to credit card users. It makes sure that whatever you owe after you die is paid in full. That way, whoever you leave behind is not responsible for your credit card debt.
Disadvantages of Credit Card Insurance
Many times, other kinds of insurance will probably cover you in more cases and with more money than credit card insurance. Also, credit card insurance applies only to the specific credit card. If you have more than one card, you have to apply for all the different insurance policies for all your different credit cards, which may not end up saving you money anyway.