Credit Card Insurance

Life is so unstable you may never know what the morrow has in store for you and it would be really nice to know your monthly bills will be paid on if you become incapable to earn your living. That's why many people try to find a proper liability insurance to get at least some confidence in the future. If you haven't set your choice on some particular protection plan yet, consider credit card insurance as one of the possible options.

Credit card insurance is a kind of security designed to cover your outstanding credit card debt if you fall ill, become disabled, die, get involuntarily unemployed, have an accident or loose your card. Its average monthly fee is about 75 cents per $100. It’s not high though it may add up to a pretty sum yearly. Consider all pros and cons of this liability insurance to decide whether you need it or not.

So credit card insurance benefits are as follows:
  • minimum monthly payment of the credit card debt if the user is unable to work;
  • free enrollment at any time;       
  • voluntary cancellation;
  • no account of people's age, health, status, wealth, gender;
  • state-regulated rates;
Credit card insurance disadvantages are:
  • limited payment period – credit card insurance companies will usually pay off on your bills for no more than a year;
  • no covering of the card usage during the claim period;
  • a set cap sum which may be smaller then your credit card debt.