If you have the security of credit card protection behind you then you would have an income coming into the home to replace your lost one if you become redundant or incapacitated. The income would then be used to continue maintaining your credit card outgoings and ensure that you would not fall behind on them and into debt through no fault of your own.

To take out credit card protection you could choose to search around and compare the cost of the insurance with the standalone provider. This would be the cheapest way of taking out the valuable cover and you would have more control over the policy than if you take cover out with the lender of the card. You could choose the percentage of the monthly outstanding balance that you want to protect and this is the amount of replacement income that you would get back each month for the term of the cover. This sum would be tax free and the provider would have to pre-agree to it. You would need to check when the payments would begin and for how long you would be able to rely on them as this can differ with providers. Some might allow you to put in a claim on the insurance after you have been redundant or incapacitated for 30 days and with other providers this could be 90 days. Some providers might also date back to day one of you becoming redundant or incapacitated so this would need checking before you take on the policy. Payments could continue for a period of 12 months or they could continue for 24 months after which time they would cease.

During this time there would be money to be able to continue meeting your loan demands and not fall behind on your repayments. Should you become unable to meet even the minimum payment required by your lender then you could be taken to court if the credit card debt mounts up and you cannot afford to catch up on what you owe. Your credit file would also be affected and this means that any application for credit in the future could be turned down.

You could choose to take out credit card protection to insure against the possibility of becoming incapacitated or redundant together. Choose just to protect against the possibility of unemployment or just cover against incapacity depending on your circumstances. With protection to fall back onto you would know exactly how much you had coming into the home each month and for how long.

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