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Do you get the credit card insurance?

Established Contributor

Do you get the credit card insurance?

I was just wondering if I should get the credit card insurance that the credit card companies offer. Does anyone in here get it?
Message 1 of 20
19 REPLIES
Super Contributor

Re: Do you get the credit card insurance?

I wouldn't but I wonder if anyone here as actually had to use it and what effect did it have on their credit report (score,blacklist,tradelines)?
10/17/2017 FICO: EQ 829 TU 830 EX 826
Message 2 of 20
Frequent Contributor

Re: Do you get the credit card insurance?

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
TU - 673 EQ - 672 EX - 669 as of 13 Nov 2015
Message 3 of 20
Contributor

Re: Do you get the credit card insurance?

Does the insurance pay off your balance, or do they make minimum payments.

If it's the latter, then it's a scam. The minimum payment will barely cover interest, so if/when you get outta the coma, you'll have just as much, or more debt then when you went into it.

I don't buy insurance for things unless I absolutely have to, or it's a loss I can't afford to take. If I end up in a coma, I could care less about my credit at that point
Message 4 of 20
Frequent Contributor

Re: Do you get the credit card insurance?

Ah,
 
Understood. I guess in the case of an auto loan it would be worth it, but I see your point in the case of the credit card. I will have to check on the balance question.
 
Stpn2me
TU - 673 EQ - 672 EX - 669 as of 13 Nov 2015
Message 5 of 20
Moderator Emeritus

Re: Do you get the credit card insurance?

for me-No way-
Hassle,expensive and restrictive.
Message 6 of 20
Established Contributor

Re: Do you get the credit card insurance?

I love when they say, there is no fee if there a balance, I try to explain why I don't want to pay 3 weeks before I have to in order to avoid a fee, also all my charges are back up wit cash in savings
People say "Only apply for credit you NEED"

I say "apply for credit you have PRATICAL use of"

I don't have AMEX card because I don't want a card that suffers from PMS
Message 7 of 20
Regular Contributor

Re: Do you get the credit card insurance?

My favorite thing about these things is when they say your debts will be covered in the event that you die.
Message 8 of 20
Moderator Emeritus

Re: Do you get the credit card insurance?

Term life insurance is much cheaper than credit insurance.

Now if I worked in the finance or mortgage industry-
I might reconsider my stance on Credit insurance-



ChaoticKinesis wrote:
My favorite thing about these things is when they say your debts will be covered in the event that you die.


Message 9 of 20
Moderator Emeritus

Re: Do you get the credit card insurance?

First of all ifr you have awill and beneficiaries listed for insurance, credit cards can't touch those funds.  For the cost of the insurance, you can set the same amount aside in savings and save mor than the min. In the case of no unforeseen events, you have a party fund.  The insurance does NOT make your min payments from all the offers I have read, only defers them.
 
As Timothy said, term life insurance is cheaper.
Message 10 of 20