Insurance FAQ
 

Why Use Credit Card Protection Insurance?

Question by , | Posted in Credit

When I get a new credit card, I'm usually dunned by salesmen on buying credit protection, free for 30 days, etc. What is the advantage and disadvantage of this? Isn't this already provided for in the credit card agreement?

Answer: The protection insurance is simply a huge moneymaker for the banks. You're paying them to pay themselves if you lose your job and can't pay them yourself. Amazing concept. And they completely overcharge you for it too.

Never take it.
 
 

Is Credit Card Protection Insurance Really Necessary?

Question by mrschrisc | Posted in Credit

I'm talking about the insurance you pay extra for on your credit cards so they would supposedly be paid off for you in the event of your death. I have a friend whose 75 yr. old mother is dying very soon of terminal cancer. I'm wondering if he just sent in the death certificate to the credit company, would this be enough to get them off his back. She has no other family except for his son, and he can't afford to pay her left over bills. His name's not on her credit card accounts.

Answer: No. The credit card industry is a multi-billion dollar industry which writes off losses all of the time. Compare that to the hundreds or thousands that might be owed on one account.
The woman's death does not get her off the hook. The credit card company has no way of knowing if the woman leaves behind any assets that might be attachable.
Your friend does not have to deal with collectors unless he has power of attorney or is Executor of his mother's estate.

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What Is Credit Card Protection Insurance And Do I Really Need It, My Card Company Is Trying Make Me Buy It?

Question by Jolia | Posted in Credit


Answer: Credit card protection insurance is really a misnomer in the UK. It claims to offer protection against liabilities incurred if you card is stolen or misused, fraud in other words.

It sounds like a good idea, but its a bit of a con because under UK law, the maximum you're liable for under the Consumer Credit Act 1974 is £50.

Your not liable for any fraud or misuse once the card has been reported stolen or lost (providing you haven't misused it yourself, and you took reasonable precautions to look after your PIN).

So in summary, your maximum exposure is £50 (credit card protection insurance usually costs more than this) and most quality UK card issuers

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1099-misc From Insurance On Credit Card Payment Protection?

Question by Jeff W | Posted in Other - Taxes

I was unemployed last year and activated my Credit Card Insurance. I just received a 1099-misc from them claiming they paid $4000 to my credit card. Do I have to claim this and will this effect my taxes because no tax payments were made.

Answer: yes, that is taxable income to you. line 23, other income on form 1040.

you received a benefit form the insurance and that benefit is taxable.


what effect it has on your taxes depends on the rest of your return.

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My Brother Died Owing Credit Card. Insurance Protection On It. He Retire Died Cos. Ill They Wont Pay Out?

Question by JanK | Posted in Insurance

sister in law doesnt have money to pay it. no estate only house.

Answer: Legally the credit card company becomes a creditor on your brother's estate. No one else can be forced to pay for it - it comes out of his assets. If the house was in his name then the company can demand payment as the house is an asset in the estate - can your sister in law take out or increase the mortgage to cover the cost?

Your brother should have been advised that when he retired - or reached the maximum age allowed under the policy, he could no longer qualify for payment protection insurance. It is likely therefore that you have a case for asking for refund of the premiums paid since he retired - or reached that age. The credit-card company will have a complaints procedure

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Balance protection Insurance on your credit card

Movie on 2011-08-30 at 19.32.mov re: TD Canada trust Visa charges, still waiting for their letter...(owed to me from Td Visa $2684.70 plus ...

What is Credit Card Income Protection Insurance?: Do Cardholders ...

A life insurance balance protection scheme may be set up to pay off the card balance completely on death but other policies may not automatically do this. On one level credit card protection insurance looks like a good deal. Not all credit card income protection policies offer the same payment benefits. What is Credit Card Balance Protection. A balance protector policy is there to help a cardholder get financial help from their credit card company if they get into certain situations. Involuntary unemployment Disability Hospitalization Death Card purchases protection This kind of insurance technically takes over the cardholder&rsquo. For a small monthly payment cardholders get coverage that is designed to help them pay off their credit cards if they lose their income for a variety of reasons....

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