Credit Card Balance Protection Insurance
Is It Worth It?
Credit card balance protection insurance maintains the minimum payments on your credit cards if you lose your job or are medically disabled. It also may provide protection against accidental illness or death. As with all insurance policies, you need to understand the limitations and conditions of the coverage before deciding if its right for you.
Other points to consider before deciding to keep or cancel this coverage are:
• Existing life or disability insurance coverage you currently have in place;
• Salary-continuance benefits at your place of work;
• Emergency savings on hand to help you manage life events;
• Your plan to get out of debt.
Credit card balance insurance is expensive in comparison with other forms of insurance. The average cost is about $1 for every $100 you owe. For instance, with a $2,000 balance, the insurance would cost $20 a month.
If you lost your job and qualify for the coverage, the insurance only covers your minimum monthly payment. This is usually less than three per cent of the total balance owing. If you are carrying this insurance on more than one card, the fees can really add up.
From a financial perspective it makes more sense to cancel the coverage and use the premium payments to create your own credit card balance insurance, which we call an emergency savings fund.
Talk to your financial advisor, that’s me!
Let’s talk about the best places to put your money for both investment and protection.
I will show you options based on your personal situation, so that you can have peace of mind!
How can I help you?
Contact me today to discuss how we can make this the best experience of your life.
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Credit Card Balance Protection Insurance
Credit card balance protection insurance maintains the minimum payments on your credit cards if you lose your job or are medically disabled. It also may provide protection against...
Note: This is provided for informational purposes only and we cannot be held responsible for any decision made by reading this post. For specific advice about your personal situation, click here to connect with me.