Credit card insurance – are your repayments protected?
Usually when taking out a credit card the lender will try to get you to take out protection for the repayments you will build up on the card. However while taking out cover can be a great idea, if you choose to take protection alongside the card you could be paying well over the odds for the credit card insurance. A better way to consider protecting your repayments is by choosing a payment protection provider. An independent provider will be able to offer you savings of up to 80% on the cover.
British Insurance who is one of the most ethical payment protection providers will offer these savings for credit card insurance and they will supply the policyholder with a quality product that comes backed with their many years of experience in selling payment protection. When you take out credit card payment protection from them it would cover your credit card repayments and your loan payments. They would back pay on the protection to the first day of you becoming unemployed or incapacitated so that you do not lose out.
You would have to wait for a period of 30 days of being unable to work or of being incapacitated before you would be able to put in a claim and then you would receive an income for up to as long as the 12th month if you needed to claim for that long. If you shop around you might find that you could take out credit card cover for up to 24 months but check the terms of the policy as some providers could ask that you defer from putting in a claim until as long as the 90th day of your unemployment or incapacity. Once the term of the policy has been reached then the benefit would simply stop paying out regardless of whether you had made a full recovery and managed to get back to work or you had found work.
Being able to maintain the payments of your credit cards is essential if you are to keep on top of them. If you fall back on them then you would see your credit rating in tatters and this could mean you might have to pay higher rates of interest even if you can get approval for credit. Your credit rating could take a long time to get back to what it used to be and during this time you could be turned down for any type of credit.
Credit card insurance when taken with British Insurance would be based on premiums which are payable each month. British Insurance taken into account your age when you apply for the protection and the amount you want to cover, up to a defined amount. With age based protection the younger generation whose outgoings are generally stretched to the maximum can now afford to cover their repayments whether they are by credit card or loans. As more people turn to using credit cards as a way of getting by and making their income stretch, it is essential that those repayments are maintained.
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For many years I have been a staunch campaigner against the major names in finance who, I believe, rip-off their customers by selling over priced, often unsuitable payment protection insurance (PPI) cover.
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