Insurance…For Your Credit Card?

If you are a credit card user, then you’ve likely already been asked whether you’d like credit card insurance. Often, they’ll extend an offer when you initially apply for the credit card, or when you call to activate your new credit card. Frequently, they’ll allow you to sign on for a free trial for like a month – a trial with a recurring billing model, so be sure to cancel if you need to.

Credit card insurance is intended to provide monthly minimum credit card payment should you lack funds from, say, job loss, or even to pay your whole credit card balance should you die. Credit card insurance may seem appealing to some credit card users, but some have filed claims for credit card coverage after losing their jobs, only to find out that job loss didn’t provide eligibility, and there have also been certain maladies that aren’t covered by credit card insurance. In short, if you are thinking about credit card insurance, then verify that it covers whatever you think it does.

Many have some form of life insurance, which will cover your credit card payments anyway, making credit card insurance unnecessary. If you don’t have a disability insurance or life insurance policy, then thoroughly investigate these options before officially making the big commitment to credit card insurance; you may receive a better insurance deal through those methods.

Credit card protection insurance will only insure one credit card; therefore, consumers with multiple cards would have to sign up for each, and pay its fees on each card. The average rate for credit card insurance hovers around eighty-nine cents per every $100 you spend monthly, and while it may seem trivial, it will pile up over the year, so be wary.

Now, if you’re currently covered by credit card insurance but need to cancel it, you’ll have to deal with a pushy phone salesman. Of course, they’ll attempt to emphasize all the great advantages of the credit card insurance, and insist you not cancel, but if the decision to cancel has been set in stone, then firmly order that they cancel the coverage. Many consumers might not even know of their credit card insurance, although it is plainly shown on your monthly credit card statement if they’re billing you.