Credit Card Insurance

When you are going to apply for new credit card, pay attention, because an offer for credit card insurance can come along with the application. According to FTC rules, you can apply for credit insurance among one of them:

1) Credit Disability Insurance
2) Credit Life Insurance
3) Credit Property Insurance
4) Involuntary Unemployment Insurance

In case, if you are not able to pay your due amount to your lender, credit insurance will cover all your payment which is known as a 'payment protection plan'. If you suffer any kind of injury due to accident or job loss, your lender will get minimum monthly payments or entire amount will be paid off to your lender in the event of your death.

Credit card insurance is provided by bank as a financial product with for bulk, or a low rate. You will get an offer to purchase a credit card insurance which is provided by your lender. If your card has $100 as a balance, then you may have to pay about $0.75 to $1.00 in credit insurance and every month this payment is administered based on your card balance.

Credit insurance is provided by the lender of any kind of credit card offer, borrowers can't compare plans before taking credit insurance and the terms and conditions are also not negotiable. Either you will have to take the policies or leave it.

In USA, every state has its own limit for credit card insurance rates. So, buying a credit insurance will be either a worse or better idea for you. However, there are many experts who don't recomend to purchase credit insurance in general.

While credit card insurance doesn't have a profitable option for credit card users, it has some advantages. If you think it is lucrative option for you, then look for a right offer after you apply for a credit card or simply ask your lender if you are already credit card user.