If you have security of credit card insurance to fall back onto then you would not have to worry where to get a substantial sum of money each month to pay off the outstanding balance on your card. While on work maintaining your credit card outgoings might be easy. However should you fall ill, suffer from an accident or become redundant then where would you find the money to meet your repayment if you did not have insurance behind you?

To take out credit card insurance you would have to choose a provider and compare the quotes for the cost of a policy. The quotes for the premiums would be based on several factors. One of these is the percentage of your monthly outstanding balance that you chose to insure. This is the sum of money that would be paid back to you each month, tax free, if you should need to claim on your policy and which would go towards you being able to pay your balance. You would have to check to find out when a claim could be made on the insurance policy as with some providers it is 30 days and with others it could be as long as the 90th day before you could make your claim. 90 days can be a long time to wait before seeing any benefit as you would have your lender sending out letters reminding you of the missed payments. Once you have claimed you would be able to do so for either 12 months or 24 months depending on your provider. After this period of time your benefit would cease whether you had got back to work or found work. A policy paying over 24 months would cost more in premiums than one supplying 12 months of protection.

You could choose what events you wanted to take credit card insurance for. Of course protection is available for unemployment and incapacity in one, in which case a claim can be made against either event, if needed. You might just need cover for your credit card repayments against redundancy alone or incapacity alone and with an independent provider you can. Also check the terms to find out if your chosen provider would pay out carer cover. If your policy includes carer cover you would be able to take care of a family member if they became incapacitated without having to worry where you would get an income from each month to maintain your credit card balance. Any ethical provider should supply you with this information before you take out your policy so you can be sure of what you are getting for your money and to check suitability.

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