Mark Carolin

Chances are you have had one of those phone calls from your credit card company asking if you want credit card insurance. If your like me, they always seem to call just as your sitting down for dinner or trying to do something important and it can be very easy to dismiss the offer as just another way the credit card companies are trying to extract money from you. After all, if your not having trouble paying you credit card bill back at the moment, why would you need the insurance. Like most insurances though you are not insuring against known events but against unexpected events and credit card insurance may have a number of benefits in the event that life throughs some hard times your way.

What is credit insurance? Credit insurance is basically a type of coverage that is created to pay off the minimum monthly payment of your credit card, should you not be in a position to make these minimum payments. In essence if your sick or unemployed or have met with an accident, and your not able to make your credit card monthly payment, this credit card balance insurance will provide you insurance to help you pay off your balance. If you make your credit card payments in time, there’s no costs This credit insurance is offered by credit card companies, various banks, car dealers, different stores and so on.

While formely many were against the idea of , more due to ignorance than anything else, nowadays a number of people are considering it, hoping to get some security from it. There are many types of credit insurance on offer such as disability cover or involuntary unemployment insurance.

The primary benefit of most credit card insurance policies is that if you have a substantial credit card debt and become unable to pay them because of a serious illness or unplanned unemployment the insurance will help cover monthly repayments. Normally the credit card insurance will be to cover the minimum monthly payments that your not able to make.

In regards to the life insurance that credit card issuers offer, this works by paying off any outstanding balance and fees in the event of the card holders death. You may think that after you die, your debts are done away with. Without insurance your credit card debts still need to be paid in the event of your death and are taken from your estate and reduce the amount that will be left for your family. If bad luck does come your way then if have credit card insurance this is one less thing you have to worry about and your liabilities are reduced.

Another situation in which your credit card insurance may come in handy is when you purchase a product which turns out to be faulty. Naturally, the first thing you would try is to try getting a replacement or refund from the store who sold you the product. In addition, it can be rather frustrating when the store that you purchased your product uses a “store credit only”. At such times your credit card protection plan will save you out of this situation. You can return the product to the store where you purchased the product from, and the credit card issuer credits your account with the original purchased amount. This is valid only if you’ve used your credit card to make your purchase in the first place.