Credit card insurance companies make it their job to convince you that their services are needed. And let’s be honest: the banks are in on it too for their share. However, are they helpful? Credit card companies boast that they can provide you security in the event of moving, unemployment, inability to work, etc.
This security provided usually involves paying an additional monthly fee added to your monthly balance. In return, if you find yourself in need, they take you through the procedural paperwork to prove whatever it is that you’re claiming. Usually, they boast paying up to several months of your credit card bill, but we’ve heard of insurance companies giving the amount in one bulk payment, leaving you to fend for yourself after one month.
Our take? A lot of work and money for little return. If you anticipate moving, being unemployed, etc. you may want to consider using it for a short period. However, don’t fall into the money traps. Know their policy and requirements for redeeming bill payments. Don’t just fork over additional fees “just because”.
* Image courtesy of Flying Colours Ltd
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