You walk into your bank/credit union to apply for a Visa Credit Card, and you get approved. The Loan officer is explaining your loan application, you sign, then they pull out another form for you to sign. Some loan officers might not explain this form very well, others might explain the form in such detail it goes in one ear and out the other. Well this is what that other form is.
“Optional Credit Card Insurance”
Some Financial Institutions might call it something else but it is in that nutshell, “Insurance.” Know, being a loan officer for over 10 years I can tell you that I personally do have this insurance on my card. But everybody’s situation is different. So as a very honest loan officer I got to know the person sitting in front of me and I told them the truth.
There are two different insurances you can have.
LIFE: If you and or your spouse pass away, the life protection will pay off your balance in full. DISABILITY: If YOU (The primary person on the account) get sick or injured on your job then it will cover your payments for you so you don’t need to worry about it until you go back to work. It does NOT cover getting laid off or being fired, ONLY sick or injury. (There are age restrictions- each FI is different)
Why did I get the protection for us. My husband works with big machinery and is in the military. Both companies are safe and have strict safety standards BUT it only takes one saw blade or one engine and his fingers, hand, or arm is gone. So I have life to pay it off and disability if he gets injured. He also was a roofer for 7 years and fell 3 times so having that disability gave me peace of mind.
My big push- If I had anyone that worked in the construction field sit at my desk I urged them to get at least the disability protection on their card and this is why. My brother in law was wearing his hard hat on a construction job, there was no safety netting around a spot that he didn’t see and he fell several feet and is know paralyzed from the waist down. They did not have any protection on any of their loans and workman’s comp wouldn’t help pay those. If they had had the disability protection on their cards and car loan, their payments would have been made and it would have saved their credit, their car and given his wife peace of mind that everything would have been paid while he was in the hospital.
It is completely up to you to get this protection or not, but do not sign anything unless you know exactly what it is, how much it is per $1000 and how often it is charged. YOU are in control of your credit card and your account.
FI- Financial Institution