Are credit card protection plans good for really really old people?
They typically run .99 per $100 and the deal (supposedly) is that if after 90 days of coverage, the cardholder croaks, that they credit card amount owed is forgiven. In the case of elderly people in not the best of health and with large credit card debt ($5000+) is this a good idea?
You’d basically be paying $500 a year and betting that you’re going to be keeping a high credit card balance and that you’d be likely to croak relatively soon.
May 20th, 2010 at 1:09 pm
Oh really old people shouldn’t have credit cards at all, No income to pay the dues . By that age you should be financially independent enough not to need one.
May 20th, 2010 at 1:54 pm
Wouldn’t it better if you add $42/mo to your monthly payment and try to get rid of the debt? You would feel better about yourself when God starts calling on you to join him.
May 20th, 2010 at 2:25 pm
They’re not good for ANYONE.
The only guarantee with insurance, is that you pay your premium!
May 20th, 2010 at 2:54 pm
Most of those plans have age limits. So, it’s unlikely that they would be available to anyone older than 70 – btw what is your definition of “really old?” Just curious ’cause I’m over 50! LOL
In general, those credit card protection plans are ripoffs. It makes more financial sense to buy regular old term life insurance. Much less expensive, and it covers anything you want it to.
May 20th, 2010 at 3:14 pm
First of all your thinking of payment protection – card protection covers the cards in events of loss, theft and fraudulent use.
Payment protection has a life cover which means the cardholder will have their bal paid off to a certain amount if they die, BUT most of the policies will have a clause, for example pre existing medical conditions wouldn’t be covered so it could be if they die from an existing condition they won’t pay out.
And they will only cover the credit card the policy is taken out against not other issuers cards