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.
Related Posts