Four Types of Credit Card Insurance Canandaigua NY

The Debt Adviser by Steve Bucci • Bankrate.com

Dear Debt Adviser,
What is your feeling about the necessity to purchase credit card insurance? I did not used to feel it was necessary until I lost my job last fall and have only been able to obtain part-time employment at less than half of what I was making. Could you offer some advice on questions to ask the credit company prior to authorizing the purchase of the insurance?
-- Brian

Dear Brian,
Insurance needs tend to be very specific to a person's life situation, and credit card insurance is no different. Having said that, the insurance sounds wonderful for the scenario you describe of losing a job and half your income; however, the credit card insurance might not kick in, as you would hope.

First, let's agree on what credit card insurance is and how it might or might not benefit you. Four major types of credit insurance are offered: life, disability, involuntary unemployment and property.

• Credit life insurance will pay the amount owed on your card at the time of your death, so long as the card company is named the beneficiary of the insurance.

• Credit disability insurance will cover the minimum payment due on your card for a specified period after a medical disability. New purchases after you become disabled are not covered.

• Credit involuntary unemployment insurance will pay the minimum amount due on your account if you are laid off or downsized for a certain time.

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