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Sunday, September 23, 2007

Credit Card and Insurance

Credit card and insurance are two very important financial services in modern sociaty. In a world that is built on the basis of credit, credit cards is a part of daily life for most ordinary people. Insurance, on the other hand, is something to protect you from uncertainty which may happen unexpectedly to anybody. The idea of insuring the future is now accepted by more and more people. Insurance and credit cards go hand in hand in many ways. Coverage for certain insurance policies are sometimes provided as benefit by credit cards issuers at no extra charge.
For example, Chase i-card provides the following insurance coverage:
· $500,000 Worldwide Automatic Travel Accident Insurance coverage
· Purchase Protection - an insurance program that covers purchases against damage or theft for 90 days from purchase date Auto insurance and travel insurance are usually such benefit for cardholders. For an additional premium, insurance protection plans are also available for cardholders to protect an outstanding balance on the cards. Usually, the insurance policy will cover the following:
· Critical Illnes Protection: For a primary or spousal cardholder under 65 years of age and were to be diagnosed with certain critical illnesses, such as Cancer, Heart Attack or Stroke, the insurance policy would pay in full the balance owing on the insured account up to a maximum.
· Disablitily Protection: For primary cardholders under 65 years of age who become temporarily disabled as a direct result of an illness or accident, this insurance policy will make the minimum monthly payments with certain limitation.
· Accidental Death Protection: For primary or spousal cardholders over 65 years of age and were to lose their life as a direct result of an accident, the full outstanding balance (to a maximum limitation) will be paid in full by the insurance plan.
· Job Loss Protection: For a primary cardholder under 65 years of age and he or she becomes involuntarily unemployed, the insurance policy will cover the minimum monthly payments based on the balance to a certain limitation until the cardholder is working again, or until your balance is reduced to zero.
· Dismemberment Protection: For a primary or spousal cardholder who were to lose the sight in both eyes or lose a limb as a direct result of an accident, the insurance policy will pay the outstanding balance up to a maximum.
· Strike Protection: For a primary cardholder under 65 years of age who become unemployed due to a strike or lockout, the insurance policy will make the minimum monthly payments up to a limitation until the insured resume working or the balance is reduced to zero.
· Loss of Life Protection: This insurance policy will pay the full balance on the credit card account to a certain maximum if the primary or spousal cardholder under 65 years of age lose their life. Insurance for credit cards is a service that is getting hotter.
However, usually this service is provided by the card issuer. The cardholder is notified normally by mail along with their monthly bill or at the time when they get the cards. There are growing concerns about fraud within unsolicited credit card insurance marketing activities. Some thieves use this as a way to steal your personal confidential information.
As a rule of thumb, never give your confidential information over phone! The above information is informational only. For accurate insurance policy, please contact your card issuers or local insurance agents before you take out any insurance policy.

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