Protecting Your Credit Score
Your credit score can negative affect your life in many ways. Not only can it prevent you from getting new credit, it can also affect your chances of getting a good job and raise your auto insurance rates. Don’t let this happen to you. Purchase credit card payment protection for if you become unemployed or unable to work through no fault of your own.
This insurance will take over and make your minimum monthly payments for you for a predetermined period of time. In the event you pass away, your credit card balance will be paid in full. This option may also be available for joint account holders.
Purchasing this type of protection is very beneficial for your family. No longer will you have to worry about defaulting on a loan when your employment circumstances change. The payments may be able to be included into the loan itself so you do not have a separate payment to worry about and the cost is determined by state limits.
Coverage is available up until the age of 65 or 70 in certain states. Some policies do cap the amount that may be paid out also and all will limit how long benefits may be paid.
Before purchasing any credit card payment protection policy, be sure to read the fine print to know which situations are covered and which are not. Picking a plan based on price is not a good idea as lower priced plans may not cover all situations. Also, many times you may enroll in this program only at certain times, such as when you first sign up with the credit card company, when a new card is issued or during open enrollment periods.
The fee will usually be added right into the payment and if often 1% of the credit card balance. Do be advised that interest rates may be added to this fee as it is part of your credit card balance. Be sure to ask if that is the case before signing on to this service.
Many companies offer this service when you request an application for their credit card. If not, be sure to ask if this type of protection is offered. American Express, MBNA, Chase and Halifax are all companies that provide this payment protection.
To file a claim, all that is needed is to call the number listed on your statement and explain the circumstances. A claim will be opened and the company will determine if you qualify for benefits.
