Credit Card Balance Insurance

It is common to use your credit card for major purchases thinking that you will pay off the balance immediately and reap the card benefits. But what if you get sick or injured and can’t work anymore? Involuntary job loss can occur at any time because of an unforeseen accident, dismemberment, critical illness, a sudden disability, or even death.. The last thing you want to be worrying about when your health is in jeopardy is making payments on your credit card. Fortunately, many banks now offer balance protection insurance on debts you may incur resulting from involuntary job loss.

Balance protection insurance must be purchased before anything happens that could impair your health or contribute to job loss. If you find yourself out of work for no fault of your own the insurance pays to cover your minimum monthly credit card payments. These payments will continue to be paid until you can return to work or your outstanding balance at the time of job loss has been paid. The insurance is there to protect you and your credit rating even in the face of financial instability. The cost of insurance is normally based on the amount of insurance you wish to purchase or it can be a flat rate with a maximum payout. If you pass away, the insurance will pay the credit card balance in full so that your family members do not have to pay the debt.

At the time of your death, injury, disability, or job loss you must have been permanently employed for a minimum number of hours per week. There is also a pre existing clause attached to credit balance insurance which states that you must not have had a pre existing condition at the time you applied for the insurance. Almost all major financial institutions will offer balance protection insurance for a premium but there are always age restrictions. You may not need this insurance if you are insured under any other health plan that will help pay off debts under the same circumstances or if you think you have enough income from other sources to cover payments if something were to happen to you.

Though it may be difficult to imagine being diagnosed with a critical illness or losing your job involuntarily, it is better to be protected than deal with the stress of finances when you should be focusing on your health.