Calls to a credit card company often involve a brief speech offering various services affiliated with the card. These only add extra fees to the already expensive credit card and few seem worth it. Accumulating debt is bad enough, but paying interest on the debt and then paying to insure that debt is a poor financial decision.
If you're unemployed for a short period, credit insurance can ease some stress. It can also keep your credit score healthy during the time of suspended payments. However, each card needs to carry an insurance policy, and for those with high balances who might be tempted by the insurance, it's just more pressure caused by looming debt.
Credit disability insurance also covers the minimum payment required on your card, but it comes into effect only if your are medically disabled. Upon the onset of the disability, any future purchases on the card are not covered.
Credit life insurance is one type of credit card insurance that will pay the owed balance on your card, but only if you die while holding the policy. The catch is that the credit card company must be listed as the beneficiary of the credit life insurance policy.
Another option is credit property insurance which will offer you payment for items purchased with the card if the items are damaged or stolen; this works like any type of property insurance.
The cost for this insurance is high, adding to the ultimate cost of your credit card charges. One organization devoted to informing consumers about credit card options and policies explains, "For many consumers, credit card insurance is expensive and rarely pays off." Consider other savings methods to plan for unfortunate incidents in your future. Keeping credit card balances low and building up a savings plan with your bank are your safest, and cheapest, ways to insure your credit card debt.