credit card debt for elderly

[Anonymous]

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

[marty56]

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@Anonymous wrote:

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

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I found this:

http://www.bankrate.com/brm/news/cc/20090316-credit-card-protection-a1.asp

IMHO I don't think CC protection was designed for this case.

[Anonymous]

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@Anonymous wrote:

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

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Please explain in what situation you are referring.

If the person is elderly and dependent on SSI as only benefit/income that cannot be attached, although accounts it is deposited into can be.

If the person is elderly and suddenly hospitalized and will income not be enough to pay coverage?

If the person is elderly and dies (as any person) all debts must be paid from the "estate" before there is anything to be left to anyone.

[Anonymous]

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@Anonymous wrote:

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

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I could be wrong, but it looks like it is just an expensive form of life insurance.

Discover and a few others try to sell me that product on a continual basis and I believe the premium every month is 1% of your statement balance.  I remember reading somewhere in their terms that they only issue coverage up to a certain age -- perhaps it was 70.

You'd need to look at your individual circumstances to decide if obtaining any kind of credit protection coverage is necessary.  If one's only assets are held jointly by a surving spouse or other relative, there may be nothing in the estate with which to pay any creditors anyhow.  Unless you live in a community property state or the accounts are held jointly, any surviving spouse would likely not be held liable for any debt.  Even if the debts were joint, a surviving spouse whose sole source of income is Social Security is pretty much judgment-proof anyhow. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

If an elderly person has credit card debt (25k), is it worth getting some sort of credit protector coverage in the short term to help avoid the debt being eventually paid from the estate? and how much does it approx. cost? thank you for any help

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Please explain in what situation you are referring.

1.  If the person is elderly and dependent on SSI as only benefit/income that cannot be attached, although accounts it is deposited into can be.

2.  If the person is elderly and suddenly hospitalized and will income not be enough to pay coverage?

3.  If the person is elderly and dies (as any person) all debts must be paid from the "estate" before there is anything to be left to anyone.

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1.  That money could not be likely attached unless the individual were somehow liable for the debt and there was a judgment.  Generally if an account is attached that contains only SSI funds, the attachment can be rendered invalid and any money taken recovered.

2.  Usually premiums for credit protection coverage are based on a percentage of statement balance.  If you pay your bill before the billing cycle ends and a $0 balance reports on the statement, there is no fee.

3.  All unsecured debts are on an equal footing assuming there is anything of value that even passes to the estate.  The whole area of probate law is confusing even to those attorneys who specialize in it.  There are various scenarios / legal strategies  under which  assets which would otherwise pass to the estate are unavailable to creditors.