What is Credit Card Income Protection?
When not used to run up outsized debts, credit cards actually have some beneficial features. Along with items such as travel and rental car insurance, many credit cards offer income protection insurance to help customers cope with financial loss resulting from situations like unemployment and hospitalization. How to enroll: Unlike several other automatic credit card benefits, income protection insurance coverage is optional for a monthly fee. To be eligible for benefits, in most cases, you will need to have signed up for the program before you experience the hardship. For example, if you applied for the program after losing your job, you will not be able to file for the benefit. Individual card companies run their own programs so contact your credit card company directly. Cost: On average, credit card companies charge between 0.85% (Discover and American Express) to 0.95% (Bank of America) of the total account balance at month’s end as a monthly program fee. If you have a $5000 balance
