Credit balance insurance
We've talked about credit card balance insurances. Let's look in details the two possible types of claims and the cost of such insurance.
- 1. Claims for disability or job loss
- The insurance company will take care of your payments for an X period of time or for up to a maximum amount. Maximum benefits vary from one insurance to another, between $ 5,000 and $ 25,000.
- To access this service, you need to be, at the time of your injury, your disability or your job loss, a permanent employee and to work a minimum of 20 hours / week.
- If you are self-employed or a seasonal worker, make sure you qualify for this type of insurance.
- When you decide to acquire this insurance, you might have to wait a certain amount of time before claiming any money.
- Note that your insurer can only start making payments after a certain amount a time following your job loss or your disability (waiting time is approximately 30 days).
- 2. Claims for serious illnesses or death
- Your Insurance will repay your credit card debt up to a maximum of X amount. Generally, this amount will vary between $ 5,000 and $ 25,000.
- Insurances cover diseases such as heart attack, cancer and stroke. The diseases covered are presented in your contract.
- Most insurance will not ask you to provide your detailed medical history.
What is the cost of this type of insurance?
As with all insurance, you will pay a monthly fee (premium). Your premium will vary from month to month depending on the debt on your credit card. For example, if your balance is high, your premium will also be high. If your credit card balance is close to your allowable limit, your charged premium may make you exceed this limit which could add fees on your credit card bill.
Source: Pret Autos