18 Sep Can’t Work? Don’t Worry About Your Credit Card
Can’t Work? Don’t Worry About Your Credit Card
If you own a credit card you have probably been asked by the provider if you would like to add credit insurance. Most people are unfamiliar with this type of insurance and either decline it or accept it automatically without knowing if it is the right type of insurance for their needs.
What is credit card insurance?
Similar to other types of insurances, credit card insurance provides you with certainty that your financial obligations can be met should anything happen to you. Depending on the provider, card insurance could pay up to 7% (over three times the minimum monthly payment required) of your credit card balance each month should you become involuntarily unemployed or temporarily disabled, or pay out the balance of your credit card (up to $50,000) in the event of your death.
One of the great features of credit card insurance is that you can claim it even if you are entitled to other benefits, such as sick leave, workerâ€™s compensation or Centrelink. Also, most providers have guaranteed acceptance and you donâ€™t require a medical examination at application time.
The criteria for credit card insurance varies from provider to provider and generally you must be at least 18 but less than 65 years old and be employed on a minimum basis varying from 10 to 20 hours per week.
Do I need credit card insurance?
As with all insurance, each personâ€™s needs are different due to our different lifestyles and obligations. Credit insurance may be beneficial to some but may be an unneeded expense for others, depending on one’s situation.
Considering your current and further financial needs is the first step in determining if you might benefit from credit card insurance. If you already have sufficient life and income protection insurance, it may be that you do not require credit card insurance. However, if you do not have any or sufficient life and income protection insurance, it may mean that credit card insurance could be a good option for you, but not necessarily.
For more information about card insurance and to determine what is suitable for your needs and objectives, contact us.