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Types of Credit Insurance

Credit insurance can help protect a person if a major life event happens. This is optional insurance coverage a person can get on their credit cards. There are three main types of credit insurance.

Credit Life Insurance

If a person has this insurance and they die the credit card company will cancel out their debt. The insurance will cover the balance a person has on their credit card. Their family will not have to worry about the bill.

Credit Disability Insurance

If a person becomes disabled they will get a check for the monthly credit card payment that they owe. They can use then this money to make the payment on the credit card. A person will need to show that they are disabled and they need to be disabled for a certain time before they will get their pay. In some cases, this may be retroactive. A person may need to wait 14 to 30 days before they begin getting payment from this type of insurance.

Credit Unemployment Insurance

If a person is working and they can pay off their credit card bills this is good. if something happens and a person loses their job this can become a problem. A person cannot quit their job for their insurance. They need to be involuntarily unemployed. A person will then get the money to make their credit card payment. There is a waiting period for this insurance. Some policies will be retroactive while others will not.

These are the main types of credit insurance. The insurance is optional but will help a person stay protected. They will help cover the credit card bill if something unexpected were to happen. This way a person can maintain their credit and they will not have to worry about how they are going to pay off their debt.