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Valued Contributor
SmartCookie
Posts: 2,010
Registered: ‎07-01-2007
0

Re: Do you get the credit card insurance?

I'm waiting for the Aflec duck to come quacking thru this thread.
 
I don't get that credit card insurance personally.  I think it only pays off in rare cases... the fine print seems to rule out just about every event where it would help.
 
I did recommend my friend check into what is offered on his... as he's anticipating a possible layoff in a few months.
EQ 787 EX 781 TU 737 11/17/07 *** I am not an attorney. If I was, I might not clip coupons. If you want legal advice, consult an attorney. If you want my personal opinion, feel free to consider my posts***
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fail2deliver
Posts: 172
Registered: ‎12-12-2007
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Re: Do you get the credit card insurance?

When i read the terms of the credit card insurance, first thing i thought was rip-off.

They charge you ~1% of your outstanding balance too.. I mean crap, that right there is a minimum payment
Established Contributor
Badcreditguy
Posts: 623
Registered: ‎08-14-2007
0

Re: Do you get the credit card insurance?

from what im reading sounds like a ripoff!
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007
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Re: Do you get the credit card insurance?



fail2deliver wrote:
When i read the terms of the credit card insurance, first thing i thought was rip-off.

They charge you ~1% of your outstanding balance too.. I mean crap, that right there is a minimum payment

 
Some charge 7.50/100.00 of the balance....WTH?  Nuch more than any minimum pyment I ever heard of.

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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Do you get the credit card insurance?


stpn2me wrote:

I always get it because I am an insurance freak as well! Reason being, my mom had a stroke about 4 yrs ago. She is alright now, but now she is on disability. While she was in a coma, her insurance that she had on her credit cards and loans paid her payments while she was in the hospital. One loan is actually paying one of her loans off. It is just peace of mind in my case! Plus with me being in the military, I dont exactly have a safe job!

Stpn2me

Now that you're back from Kaboom, Afghanistan, you might want to take another look. :smileywink:

To me, it seems like one of the worries that CC insurance seems to soothe is that you won't have to worry about someone making the payments for you if you are unable to. Not so much a question of not having the money, as not having someone to hit the "send" button. If that's the issue, setting up some sort of automatic payment might cover that --set for minimum plus $20, or whatever, depending on how flexible the site is.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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Timothy
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Do you get the credit card insurance?

Unless the credit insurance is issued from NFCU or some similar org that caters to Active Duty- "Combat Death" usually is NOT covered.

Now SGLI- is some of the most inexpensive life insurance you can get.



haulingthescoreup wrote:

stpn2me wrote:

I always get it because I am an insurance freak as well! Reason being, my mom had a stroke about 4 yrs ago. She is alright now, but now she is on disability. While she was in a coma, her insurance that she had on her credit cards and loans paid her payments while she was in the hospital. One loan is actually paying one of her loans off. It is just peace of mind in my case! Plus with me being in the military, I dont exactly have a safe job!

Stpn2me

Now that you're back from Kaboom, Afghanistan, you might want to take another look. :smileywink:

To me, it seems like one of the worries that CC insurance seems to soothe is that you won't have to worry about someone making the payments for you if you are unable to. Not so much a question of not having the money, as not having someone to hit the "send" button. If that's the issue, setting up some sort of automatic payment might cover that --set for minimum plus $20, or whatever, depending on how flexible the site is.


Valued Contributor
netpanther
Posts: 1,694
Registered: ‎08-07-2007
0

Re: Do you get the credit card insurance?

The problem w/ CC insurance is that the fine print will really get you. I know of someone who lost their job and then went they went to use it, they denied them.
 
If the fine print is good then maybe I would consider it- but I haven't seen any yet that is worth it.
 
PS-always keep in mind that except for a secured card, CC's are unsecured debt and they can't come after anyone except to try to sue- and good luck w/ that when someone is dead.
 
Sorry for sounding so morbid.
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Do you get the credit card insurance?

I still think that a lot of people go for them in the hopes that if the cardholder is somehow unable to pay d/t illness, alien abduction, etc., the minimum payments will be made. We're in a very mobile society these days.

Not saying that this is a reason to get the insurance, I just think that that is one of the motivations.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
netpanther
Posts: 1,694
Registered: ‎08-07-2007
0

Re: Do you get the credit card insurance?



haulingthescoreup wrote:
I still think that a lot of people go for them in the hopes that if the cardholder is somehow unable to pay d/t illness, alien abduction, etc., the minimum payments will be made. We're in a very mobile society these days.

Not saying that this is a reason to get the insurance, I just think that that is one of the motivations.


Totally understand the motivations- again, it is just that the fine print will get you. I.E.- not totally for sure, but I swear one that I read said  you had to be in the hosptial THREE mos- not one and had to be unable to work, the person who lost the job was able to work and they got him on that one...
 
know what I mean? In most cases it just "freezes" the card and the interest doesn't accrue...they don't actually make the payments...
Regular Contributor
Niki9
Posts: 164
Registered: ‎07-08-2007
0

Re: Do you get the credit card insurance?

I had it on my Orchard bank card ....
I got it because someone told me that the cc would give higher limit if you got it .....
 
I had it for years.
 
I did not even use it when I was unemployed.  Just didn't even think about it.  I just paid the minimum because I could at least do that.  - should have used it.
 
Then, I stated trying to get out of debt and I kept making big payments on that card but they did not seem to be doing anything.  It was because the interest rate was so high and then the insurance amount that they added that only $1 or $2 was going to the principal.
 
So I called and asked them to take it off.  She asked why and I told her that I was trying to pay off my debt.  She said that when I pay down the cc card the payments on the insurance would go down.  I told her that I could not even pay the card down because 1/2 my payment was going to the insurance which was preventing me from paying it down if the 1st place.
 
Then she used the scare tactic.  What if you lose your job tomorrow?  So, I said then I would call you and add it to the account since I could add at any time and i pay the 30 or 60 days of the insurance and then I would get a job at a temp agency and when they laid me off from the temp agency I would call in to make my insurance claim.
 
I think she was very upset when I said that.  I am sure they will be changing the unemployment requirements now.

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