Credit Card Insurance

Credit card insurance is offered by most of the companies providing the facility of credit card. But credit card insurance is not known to majority of people. When enquired about credit card insurance most people either decline or accept it with out properly knowing if the type of insurance they decline or accept is good or bad for them. As with any other types of insurance credit card insurance are also different types and different people will need different types of credit card policies according to their needs.

Credit card insurance is not needed by all. It might be an unwanted cost for some one but a need for others. If you are aware of credit card insurance you will be able to take the right decision. You have to know different types of credit card insurance as well.

Types of Insurance

Credit card insurance is mainly of four types. They are

  • Credit life
  • Unemployment
  • Property
  • disability

Credit Life Insurance

Credit card insurance of this type will pay off any debt owed by you at the time of death. In this insurance type the beneficiary will be the company to whom insurer owes debt.

Credit Disability Insurance

Credit card insurance for disability as the name indicates will protect credit rating of insurer by paying monthly payment in case of any medical disability to the insurer. Payments are usually made for a certain period and after the disability period, any purchases will not get insurance coverage.

Involuntary Unemployment Credit Insurance

This type of credit card insurance will help you in making of monthly payment on laid off or downsizing. In involuntary unemployment credit card insurance none of the purchases made after unemployment of involuntary type will not be covered.

Credit Property Insurance

Credit property insurance will pay off the debts on any purchases made by you on credit in case of any type of destruction caused to that particular item. The item may be destroyed by any incident covered by the policy terms and conditions and for those damages for which payment is made a deductible will not apply.

Taking Decision

After considering all the needs you have in terms of finance you have to determine if you are in need of credit card insurance or not. If you are having disability policies already then there is no need in taking credit card insurance. This is because death or disability of insurer will be covered by such policy and there is no use in taking two policies of same type as you can make claim of only one policy for a particular instance. If you are not having life and disability policies it will be better to take credit card policy of the same type. But this does not mean that credit card insurance is the best type of insurance policy for you.