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Choosing What Is Important

Everyone has been exposed to those monthly credit card statements that include a variety of inserts for many different offers. On top of that, the credit card issuer has a tendency to call frequently offering you some new insurance program that is “free” for the first thirty days, but you have to sign up right then. The difficult part is that there are so many different offers that they will try to sell you, it’s hard to decide what’s important and what isn’t. Review the possibilities and decide what you really need before you decide to buy any kind of credit card insurance.

Disability Insurance

Depending on the company for whom you work, this may or may not be a priority item for you. With disability insurance, if you are ill or injured and cannot work for at least thirty days, the minimum payments on your credit card will be covered if you are up to date with the payments and not over your credit limit. If your company pays your salary while you are ill, or within a reasonable percentage, you may not need this insurance, but you want to look at it from a long-term perspective before you decide such as considering how long your company will pay you for your illness. The disadvantage with this insurance is that if your credit cards are nearing their credit limit, the minimum payments covered by the insurance are not going to reduce your balance, and may in essence eventually cause you to exceed your credit limit because of the interest.

Life Insurance

If you don’t take any of the other insurance that is offered, you should definitely put this one on your priority list. If you should die, the insurance will cover the balance on your bill as long as it’s up to date and not over your credit limit. This saves your family from losing money out of the proceeds of your estate because of bills that need paid. You may feel it can’t hurt your credit when you’re gone, but it will hurt your family by reducing the amount of available funds from your estate. Without insurance, your creditors will attach a lien to your estate that will have to be paid before your survivors receive any of their inheritance money. In order to protect your family from undue stress and financial hardship, insure the balances on your credit cards.