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| *Loan,banking and credit>>>disability insurance |
Is buying life and disability insurance mandatory with credit cards? |
Is buying life and disability insurance mandatory with credit cards? No It is not. No it is not mandatory and don't let those folks trick you into doing it either!! Credit Card folks always try at the end of a conversation throw that at you, either when you are calling to activate the card or about a random question on your account. They'll tell you that if you are ever injured or disabled or not able to make your payment due to unemployment this program will make the minumum payment for you. Here's the deal..it takes a while to activate the program because you have to prove to them that you are disabled, injured, or out of work. Meanwhile you have to keep making your minimum payment. Then once proven to them, they don't make your payment for you...the balance does not go down..they just require no payment and intrest keeps accruing. In addition they keep charging you for that service. It is a total rip off and the only reason they are so persistent in trying to sell it to you is because they make a bonus and commision based off the number of those policies they tack onto accounts. If you did add it to your account you can call and cancel it. They will try to talk you out of it....but don't be diswayed. Instead of paying them 2% of your average daily balance every month for the insurance protection why not stick $5 a week in a sock drawer or something like that to build up an emergency fund for the day you can't make that payment? Chances are though that if you ever are injured or disabled the credit card payment is going to be the least of your worries. And if you die...well that's their problem....unless someone else is on the card with you...they can't come after anyone for the balance....they just write it off and count up the money they made off charging you that premium interest and insurance rates. Good luck! No, they always tries to sell you those. Don't buy them. It's rather expensive. I don't think it's mandatory but the disability coverage is a good idea, you never know what will happen. No. This is a tricky issue. While some credit cards still offer credit life and disability insurance on their account balances, you are almost always better off buying regular life and disability insurance coverages. The 'insurance' the card offers only pays your balance on the card and nothing else. Why spend money on that when you can spend the same money on a policy that pays your beneficiary who can then use the money for whatever. Plus many cards now aren't even offering insurance, they offer "debt cancellation" policies. Credit Life policies are insurance policies that are stacking with all kinds of consumer benefits like free trial periods, rate regulation and the backing of an insurance guarantee fund if the insurer goes insolvent when it needs to pay your claim. Debt Cancellation policies are not regulated by any government entity....which means the issuer can charge whatever they want and there is no consumer watchdog agency that can take action if consumers are being screwed by the issuer. All in all....its best to avoid those and just buy a regular life insurance policy or disability policy. Not that I am aware of. You may have some "fly by night" credit card company or something. Never heard of that. |
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