Credit card companies use a variety of creative names for credit protection insurance, but they all provide essentially the same service. You pay a monthly premium, and in return you get the piece of mind that comes along with knowing your credit card payments (often only the minimum payments) will be covered in the event of unemployment, disability, or even death.
But is it worth buying? For most credit card users, no. If you're using credit cards wisely and never carry a balance in the first place, you have no reason to worry about leaving your family with a big unexpected credit card bill. Take a pass on any offers you receive with your credit card statements referencing payment insurance. Even if you do carry a small balance from time to time, the cost of the insurance is likely not worth the benefit it provides.
On the other hand, if you do have a significant amount of credit card debt and suffer an unexpected life-changing event, credit card protection insurance could provide some much-needed assistance for surviving family members or help you get through a rough period without seriously damaging your credit scores.
Before signing up, make sure you know exactly how much the insurance costs and what it will cover. As with any insurance product, there are often restrictions and maximum payouts you need to clearly understand in order to determine if the product is the right fit for your needs.
