How credit card payment insurance.

What is credit card payment insurance?
This insurance pays your monthly credit card balance if you become unemployed or disabled. Additionally, in the event of your death the insurance would pay off the balance of your credit card account.

Do you need credit card insurance?
This question is highly debated and situational. If you are unhealthy or work in an area where there is a good chance you will become unemployed it may be worth it. If you are unemployed and you miss making the minimum payments, there will be a negative effect on your credit rating, which can easily start a snowball affect into other areas of your life. However, some financial planning experts feel that it's a better idea to self-insure by making a small deposit each month into a savings account to draw on for the minimum payment. They also note that most coverage pays only the minimum monthly payment, not the entire balance.

They also point out that many credit cards already come with many free insurance protections such as: cell phone replacement (if you pay bill with credit card), lost luggage insurance, trip cancellation insurance, travel accident insurance, and rental car collision insurance.

How much does credit card insurance cost?
The cost of coverage can vary by credit card issuer. Capital One, for example, says, “You can cover yourself with this optional program for only 99˘ (plus applicable taxes) per every $100 of the balance of your account shown on your Capital One MasterCard monthly statement.”

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