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Options For Credit Card Protection Insurance And Benefits On Policyholders
The term credit protection coverage can be masked under different names. It can be called credit shield, safeguard, pay protection, or others. Whatever it is called, the main goal of this particular insurance is to offer security to a policy holder in the event that he or she becomes unemployed due to an illness, an injury, disability and even death, which renders you incapable of paying the credit card debt. Depending on the issuer of the plan, the policy holder will have to pay monthly consistently and you suddenly lose your job due to the said reasons, the credit card payments are put on hold. The interest is also held back. The extent of this coverage can be as long as 2 years. If you are worried about your credit rating, do not. This policy will keep the current rating on solid ground.
Options for your particular needs:
The credit card protection insurance comes in a number of types. There are 4 major types of insurance that you can choose.
- Credit life insurance is the payment of the credit card debt when the person dies if and only if the credit card company was chosen as the beneficiary of the ...
... insurance.
- The credit disability insurance handles a minumum payment that is due on the card for a particular amount of time due to disabilities. This excludes the purchases that were made to address the disability.
- Involuntary unemployment insurance pays a specified minimum amount on the policy holder's account when the person was laid off by the company due to downsizing. Again, any purchases after this will not be covered.
- The property insurance is a payment offered by the provider if there are some damaged items or stolen stuff.
You have to be guided that the amount that is paid for by the credit card protection insurance is only minimum so you have to give your share. This is just supplemental support so that you can minimize the issues like piling up of the credit debt as well as other issues like bad credit rating and others. One solution is to buy different credit card protection insurance policies for different credit cards that you have. Normally, only 2 to 3 per cent of the debt is paid so that would mean the rest will accrue the interest. Sadly, this will be most beneficial in extreme cases like with death in which all the balance will be paid off to spare your family. This only means that you should try to manage your credit card usage well so that even if you have the insurance, the payments will very manageable for you and your family until you gets back to work.
Shourya Ray Chaudhuri, Ezine Articles Expert Author.For more information: Credit Card Protection Insurance
Get more information: Mortgage Payment Protection Insurance
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