There are two specific cases when you could benefit from credit card insurance cover:
1. Credit Card Theft
In the event that your credit card is stolen and used to purchase goods, you can call your credit provider and inform them of the loss of the card as well as the transactions that were not made by you. It is important to report the theft or loss of your credit card as soon as possible. You may also need to report the theft to your local police station and provide your credit card company with a case number.
The credit card will immediately be cancelled and any transactions performed after the loss or theft will be removed from your transaction history. This means that you will not be liable to repay these amounts. This type of insurance is normally a fixed part of your credit card agreement. However, you may need to select this option when applying for the credit card or take out additional insurance to ensure that you are covered.
This insurance can also provide you with cover in the event of identity theft. However, you will need to provide proof that you are a victim of identity theft.
2. A Payment Protection Insurance Plan
In the event that you lose your income, your credit card insurance cover will make payments on your behalf for a specified period of time or until you are able to afford the repayments. Loss of income could be due to an injury, loss of employment or death.
It is important to read the terms and conditions of this type of insurance policy carefully. Some insurance policies will not provide you with this type of cover if you were fired or if you resigned from your job. In addition, they may not provide cover for some types of employment. For example, free lance workers, consultants and commission earners who do not receive a regular salary or wage may not be eligible for cover. Check out PPIGuru.co.uk for more information about how to claim back your mis-sold payment protection onsurance.
The financial institution or credit card provider in-house should offer loss of income credit card insurance. Alternatively, you can find an external insurance provider that offers all types of credit card insurance.
If you opt for an in-house insurance policy, the premium will be deducted from your credit card on a monthly basis. You will need to make monthly payment arrangements if you are using and external insurance provider.
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