Archive for the ‘Credit Card Payment Protection Insurance’

With redundancies a very real threat to anyone who is in full time employment and each and every one of us vulnerable to falling foul of an accident or illness which prevents us from working, it makes sense to have some sort of financial stop gap in place in case you should suddenly find yourself without an income. credit card payment protection insurance can be a very important product to have if you have a credit card which you use on a regular basis.

For a premium each month, credit card payment protection insurance will provide you with a monthly amount – normally a percentage of your outstanding balance - in the event that you become unable to work due to involuntary redundancy, accident or sickness. The tax free sum you will receive will help to maintain the repayments of your credit card, meaning there is one less financial matter to worry about at an already stressful time.

Depending on where you buy your credit card payment protection insurance from, the benefits can last from 12-24 months – or when you get back to work, whichever is the sooner. This should give you more than ample time to get well or find alternative employment.

Another policy terms which can vary too is when the claim can be paid out from. It is usually anywhere from 30-90 days after the covered event. Some providers – such as independent specialist British Insurance – will back date your claim to the very first day that you were unable to work, making the policy really good value.

The price of the credit card cover can vary tremendously too if buying it from your high street bank or lender when taking the card compared to buying it from a standalone provider who will historically provide a much cheaper option. So always shop around for the cover to ensure you get the best deal comparing not just the premiums but the policy features and benefits too.
As with all insurances, the terms and conditions of the policy will vary among the different providers, so don’t assume that they are all the same. Do always make sure you fully understand the cover you are buying, paying special attention to the exclusions. Common exclusions include being in part time employment; if you are of retirement age; or if you have a pre-existing medical condition. They can also include any mental condition which you knew of or should reasonably have known about, at the start date.

As you can see, credit card payment protection insurance is an invaluable product that can really can take away the stress and worry of how you will you manage financially should you lose your income.

If you own a credit card then you know the temptation to use it is great. You will also know that as soon as you near the maximum limit, a kind lender will send you one of those automatic limit increase letters. Before you know it, you’re off to the shops spending like there’s no tomorrow. But have you stopped to consider how you will repay your credit card debt if you were to lose your job? Well, that’s where credit card payment protection insurance could help.

This insurance is available to anyone who lost their job due to an involuntary reason such as redundancy or when you are unable to work due to accident or sickness. It is designed to help you keep your credit card debt under control so while you are off work, you won’t have any missed payments which could ruin your credit profile

What Are The Benefits?

With a credit card payment protection insurance policy, you will receive the benefit for a maximum of 12-24 months. This benefit will be used to pay a percentage of your credit card balance.

The greatest benefit is the peace of mind you’ll receive. Even if you don’t have a salaried income, you won’t have to worry about bad debts due to missed credit card payments which could make it difficult for you to obtain low interest credit in the future.

Main Features

While benefits are being paid, if you were to use your credit card to make purchases, the provider may not cover those new purchases.

You will probably need to wait out a lender specified deferment period before you can make a claim.

There are specific exclusions and eligibility rules regarding hours of employment, age, certain medical conditions and residency status etc. So ask about these before taking out your credit card payment protection insurance.

Things to Note

Before taking out your credit card payment protection insurance policy, be sure to ask how it relates to your specific circumstances. These policies are not medically underwritten so you aren’t asked detailed questions as part of the qualifying process. It is up to you to confirm if based on your circumstances the policy will payout when you need it.

The last thing you want is to be stuck with a policy that is of no use to you.

Another thing to note, if your credit card provider is offering you their credit card payment protection insurance you don’t have to take it. In fact if you were to get a quote from an independent company, you will find the premiums are lower.

One example is British Insurance, they are an ethical provider of protection products and they offer up to 80% savings on protection products.

Conclusion

Determining if credit card payment protection insurance is right for you will require you to question your provider and read the terms and conditions. Once you’ve done your homework and if you discover you need cover, then the benefits of this type of policy could be very beneficial. It will help you maintain your credit card payments until you return to full time employment.

How many of us, at some point, have had to rely on a credit card? From picking up the weekly shopping at the end of the month when times are tight, to an unexpected car repair, that plastic rectangle can come in handy when the cash flow temporarily dries up. If someone is able to pay back what they owe quickly, they can even keep the interest down. But we cannot bank on the fact we will always be able to pay back what we spend, and heavy users of cards may have a particularly nervous eye on their finances during times of financial uncertainty. Some may even consider a credit card payment protection insurance policy to give them peace of mind when it comes to keeping up with the statements.

‘Contactless’ payment systems, where a card user simply scans their plastic at a payment point also mean cards will become even more easy to use, and possibly mean higher statements in certain circumstances if a customer gets used to paying for things on the go.

‘Payment protection’ is a phrase often attached to a wide number of financial insurance policies, but credit card payment protection insurance is far more specific than other products sold by insurers operating in the sector. It can also be less expensive than a broader policy which covers a number of commitments like mortgages and secured loans.

Card insurance simply protects someone’s ability to pay back their debt to the card issuer. It will normally cover someone if they suddenly lose the ability to pay through their income disappearing through no fault of their own. As far as insurers are concerned ‘no fault of their own’ means due to an accident, illness, or involuntary redundancy.

Depending on the policy, it will normally cover a percentage of someone’s credit card debt. This percentage will be agreed when the policy is taken out. To give an example a person could choose to insure 10 per cent of their credit card bill - meaning if they had an outstanding balance of £1,000 when they made a claim, their insurer’s first payment on their behalf would be for £100.

The main benefit of this is that it helps keep creditors from the door while someone is trying to get better or find a new job. Falling behind on a credit card bill can lead to a court appearance and at the very least an unwanted mark on someone’s credit rating which could affect their ability to borrow in future.

credit card payment protection insurance policies of this type can run for 12 or 24 months and incur a regular premium as with other types of insurance. When it comes to getting a quote, consumers might save money by opting for more independent insurers such as protection specialists British Insurance. Company managing director Simon Burgess said: “Credit cards are a useful thing to have but have consequences attached when someone is suddenly unable to pay. A reasonably priced payment protection policy can give straightforward protection when the worst happens.”

Credit card payment protection insurance can stop you from falling behind on the repayments of your card. You can take out protection against losing your income to accident, sickness or redundancy. You would insure a percentage of the outstanding monthly balance on the credit card against these events and if you then became a victim you would claim the sum back.

The money you received back from the policy would be used towards maintaining your credit card repayments and this would stop you from falling into debt. By being able to keep up with the repayments you would also ensure that your credit file would not be affected and this is essential if you wish to put in an application for credit of any kind. Your credit file is what all lenders take a look at whether you are applying for another credit card, a loan or a mortgage and if yours is bad you could be turned down. Even if you are given approval the interest rate on the borrowing might be well over the odds.

When taking out the credit card with the lender they will try to persuade you to take credit card payment protection insurance. However you need to be aware that if you choose to shop around for the policy with independent payment protection providers you can save a great deal of money. Independent providers such as ethical leading specialist provider British Insurance will offer cover that is based on your age and the amount you wish to protect. They also offer payment protection that comes with no excess as they backdate the benefit to the first day of your unemployment or from you being unfit to work.

You can put in a claim with British Insurance from the 30th day of unemployment or from being incapacitated and then you can rely on an income for up to 24 months if you need to make a claim for this long. If you choose to search and compare with other specialist providers you will need to read their terms and conditions as there are some policies that will continue for just 12 months. You have to also check them to find out when you can claim as with some providers it can be as long as the 90th day.

When checking the small print of credit card payment protection insurance you should check for the exclusions. There are some to be found in all protection and these depend on the provider. Should you choose British Insurance as your provider there will be just a few exclusions. However there are some providers that will add in many more and they need checking against your personal circumstances.

Credit card payment protection insurance is a protection product that is taken out against specific credit cards. If you were to lose your regular income due to involuntary unemployment, sickness or an accident, then the policy will cover a certain percentage of your credit card balance.

If you think protecting your payments is not necessary, think of what you will do if you were to lose your job due to illness for example and no income was coming in. You won’t be able to find another job until you get better so how will you maintain your credit payments.

An unfortunate turn like this could lead to bad credit, endless red letters or creditors calling, none of which you need when you are ill or looking for alternative employment.

Without a doubt the main benefit of this credit card payment protection insurance policy is the ability to meet your monthly credit card payments even though you don’t have a regular income.

Most policies will continue to pay out for a set period which is specified by the lender. Generally the maximum time is 12 -24 months.

Before a claim can be made there are usually deferment periods of three or six months depending on the provider you choose.

Most lenders will try to convince you that taking their policy is compulsory, but this is not the case. You are free to obtain quotes from independent companies and you may often find that their premiums are lower.

Companies such as British Insurance provide protection products at premiums which are up to 80% lower than high street providers. So there is no reason to spend more than you should.

Choosing Your Policy

Many providers have been guilty of mis-selling this product and you should know that nothing is wrong with the product. The problem occurred when providers did not take the time to explain the features of the policy and assess it against customer needs. For example some policies do not cover retired or self-employed persons.

Before taking out your insurance make sure you know if your circumstances will be covered. Read the terms and conditions and ask as many questions as you have to until you are satisfied that the policy will benefit you.

Is It Worth It?

• If you want to ensure you’ll have peace of mind in the event of job loss, this policy could be for you.
• If you are not likely to receive redundancy or sick pay, you will need an income to maintain your monthly debts

Summary

Credit card payment protection insurance is very useful when you have one main source of income and no possible means of accessing a replacement if you are unable to work, so why not consider taking out your policy today.

Most people will hold a credit card at some point during their adult lives, although the extent to which someone uses or relies on it will vary from person to person. Although in some cases an extremely useful piece of plastic, a card can also become a financial hazard if it starts to get out of control. Things can become particularly difficult if someone suddenly loses their income unexpectedly. This is why some people choose to back up their ability to pay with credit card payment protection insurance.

This type of cover is often bunched in with the wide range of phrases falling under the payment protection insurance market. Cover which only protects a credit card, however, is quite straightforward and widely available, and in some cases cheaper than a very broad policy covering a number of debts.

Part of the catch when it comes to holding a credit card is the fact that smaller repayments usually incur a greater rate of overall interest. If someone starts to really struggle they can end up with a stain on their credit rating and can even end up being hassled by debt collection agencies - a court case may even be on the cards in some cases. The stress which follows can be exacerbated by the fact someone is unable to pay simply because they have lost their income through no fault of their own due to accident, sickness, or involuntary redundancy. These are the types of circumstances credit card payment protection insurance normally covers.

A prospective policy holder will normally need to decide what level of outstanding credit card balance they would like covered. The company will often put a limit range on this which means, for example, someone will need to insure at least £1,000 up to a maximum of £10,000. An insurer will normally offer to pay a set percentage of the outstanding balance for every month someone finds themselves without an income. To give an example, if someone has a credit card debt of £2,000, and the insurer has agreed to cover 10 per cent, the first payment will be for £200.

The cover will normally last for a set period from a few months up to a maximum of approximately a year, depending on the insurer, or until someone finds a fresh income or recovers from an illness and is in a position to start paying the credit card bills again themselves.

Costs of premiums tend to vary dramatically, and many credit card companies will offer someone a level of protection at the same time as they offer them the plastic. This type of cover can sometimes be best avoided. Instead, standalone providers like payment protection specialists British Insurance, can offer credit card payment protection insurance at a lower price without scrimping on the quality of cover. Company managing director Simon Burgess said: “High street card providers can be responsible for overpricing their card protection. We don’t take advantage and we don’t offer loans - we supply sensible cover at sensible prices.”

Credit card payment protection insurance can be taken out by insuring a percentage of the balance outstanding on the credit card. This would be paid back to the policy holder as a tax-free income if they suffered accident, sickness or unemployment. The sum of money would be used towards being able to maintain the repayments of your credit card each month for the period of the protection.

Without cover you could have to struggle to find the money to be able to maintain the repayments. If you were to fall behind on repayments you would have to find a way to make an agreement with the lender to pay back what you owe. If you cannot then you could be taken to court and at the very least your credit rating would be affected which could make borrowing in the future next to impossible.

Credit card payment protection insurance can be taken out when you take on the card. This would be one of the dearest options for protecting your repayments and you can choose to shop around and buy the protection independently. If you choose to take a quote with standalone payment protection specialist British Insurance you would be given one of the cheapest quotes and get a policy that would come with very few exclusions. The exclusions would have to be checked against your circumstances for you to be sure that you would benefit from taking out the protection. British Insurance gives you all the information you need to check eligibility on their website before you take on the cover.

You would also be given a policy that is back dated to the first day of your unemployment or from being incapacitated. With ethical British Insurance you could put in a claim from day 30 and then receive protection for up to 12 months. If you shop around with other providers you might find protection that paid out for up to 24 months if you check the small print. You would also have to check the terms and conditions of the cover to find out how long you would have to wait before making a claim as with some providers it could be as long as 90 days.

Credit card payment protection insurance is a better form of protection to fall back onto than risking savings getting you through unemployment or incapacity. Jobs are hard to come by and it could take you some considerable time to find suitable employment again. It could also take a great deal of time for you to make a recovery from illness or accident and savings could run dry well before you had got back to work. Relying on State benefits could also be a let down as you would have to be eligible and even if you are eligible you might find the income you could receive falls short of the income you are used to bringing home.

If you, like the majority of individuals, rely on using credit cards to make ends meet then you need to give some thought to taking out credit card payment protection insurance. The insurance, when taken out with an independent payment protection provider, does not have to cost a fortune and it can keep you out of payment arrears if you lose your income. You might lose your income to accident, sickness or you could become unemployed.

You would take out the protection by insuring a percentage of the balance outstanding which is set by the provider and then you claim this sum back tax-free, if you should need to make a claim. The sum of money would go towards the repayment and ensures that you would be able to continue meeting them. If you did not have something to fall back on and lost your income then at the very least you would earn a bad credit rating and this means that borrowing in the future would be almost impossible. In the worst case you would be taken to court by the lender so they can claim back the money you owe.

If you were to get your quote for credit card payment protection insurance from standalone specialist British Insurance you would make the biggest savings when compared to taking the cover alongside the card with the lender. High street lenders make around £4 billion each year by adding in payment protection alongside their loan, mortgages and credit cards. A standalone provider would give you a premium to pay each month which is based on the amount you choose to protect and your age when applying. The younger generation get the cheapest deal which means the payment protection is now affordable with British Insurance.

British Insurance would begin to provide you with an income after the 30th day of your being unemployed or incapacitated and they backdate their cover to day one of you becoming unemployed or from being unable to work. You would then be given a payment each month for up to the maximum of 12 months and then the protection would expire. If you chose to look at protection with other providers you have to make sure that you check the terms and conditions as there could be different starting and ending dates. Some providers will continue to provide you with an income for up to as long as 24 months. However you also have to be aware that the starting date with some providers can be anything up to 90 days before you can put in a claim and not all providers may payback to day one.

Also check the small print of any credit card payment protection insurance that you are considering taking out. There are always exclusions that need comparing against your circumstances. It is essential that you do know about these and have checked them before you take on the protection and British Insurance supply you with these on their website.

Credit card payment protection insruance could stop you from getting into debt if you were to lose your income as the result of being made redundant or if you should fall ill or suffer an accident that means you are unable to work.

You would take out the protection by insuring up to a pre-agreed amount of your credit card balance and then this sum of money would be paid back to you as a tax-free sum if and when you needed to make a claim. The money would go a long way towards you keeping out of debt and it means that you would not have your credit rating affected.

If you did not have something to fall back on and lost your income then you would have to struggle to be able to keep up with the repayments. If you fell behind and your credit rating was affected then you would find it very hard to be able to borrow again. Even if a lender was willing to take a risk on you, you might have to pay a high rate in interest for the loan. Of course along with that you would have to pay back the lender what you owe.

Credit card payment protection insruance would begin to pay out depending on the terms set out by the provider. You would have to check the small print of the cover to find out when you would be given your first payment and when you would stop receiving the income. If you choose to take out cover with independent payment protection provider British Insurance this would be from the 30th of you being unemployed or from being incapacitated. You would then have a period of 12 months of payments in which to search around for work or to make a recovery and then the protection would cease. The terms and conditions of other providers could reveal that you might get an income for up to 24 months. You might also find that some providers could ask that you defer from putting in a claim up until the 90th day of you being unemployed or incapacitated.

When looking for credit card payment protection insurance you would also have to check the terms of the protection for exclusions. All providers would add in some and some more than others. Ethical payment protection provider British Insurance would add in just the most frequently found exclusions. It is essential that you do check these against your circumstances as they could stop you from being eligible to make a claim. Once you have matched these against your circumstances then you would be sure of having a back up plan on which to fall back if the worst should happen and you were to become unemployed or incapacitated. British Insurance gives you all the information needed for you to ensure that you would be eligible to put in a claim on their website. Once you have checked you can then apply there and then for protection for your credit card.

Credit card protection insurance can be a very valuable form of protection for anyone that relies on using their credit card. While some people just turn to their credit card if they need it for an emergency, many others rely on their credit cards to make their salary stretch and use it almost daily. When working all is well and good as you can simply repay the bill each month. However if you were to fall ill, suffer an accident or become unemployed and lose your income then you could find yourself getting into debt. With protection behind you there would be no worry as the income you received from the policy would go towards maintaining the repayments.

You would take out the cover by paying a premium each month which would be based on age and the amount you pre-agreed to insure when taking on the cover. This amount would then be paid back to you as a tax-free income if you become unemployed or incapacitated and would help you to keep out of debt.

One of the cheapest ways of taking out credit card protection insurance is to take the cover with an ethical standalone provider. If you get a quote with independent specialist British Insurance this would be one of the cheapest quotes available. They would also provide you with the information needed so that you could check the exclusions against your circumstances and this is essential if you are to be sure that you would be able to put in a claim.

Your policy would provide you with an income once you had been incapacitated or unemployed for a period of at least 30 days with British Insurance. Once you had made a claim on the protection you would then have so long in which to find work or to make a recovery and get back to earning a living. With British Insurance you would be able to receive an income from up to 12 months before the protection would expire. You might be able to find a provider that would offer credit card cover for up to 24 months but you would have to check the terms before taking on the cover. You would also need to check the terms of the policy to find out when you would be able to put in a claim as some providers can extend this to up to 90 days of unemployment or incapacity.

Credit card protection insurance can be a better plan to fall back on than relying on savings getting you through incapacity or unemployment. You would not know how long you would have to rely on them and with jobs being scarce it could be many months before you found work. It could also take a long time for you to make a recovery and get back to work.