This is for all Desi friends.

There is a insurance called Credit Card Protection. I am sure many people know about that.

You pay a fixed insurance rate on your balance every month and the Bank will pay off your balance when you loose your job. Great.

Here is the catch. The Bank will ONLY pay off your Minimum Monthly Payment and not the full balance.

There was a full news coverage on this CBC Marketplace.

You pay the insurance fee even if you pay off your monthly balance on time, I knew about this but did not know that the Bank will ONLY pay the minimum payments and nothing more than that.

Good I don't have it. Many times when you take a new credit card, the bank will slip in the Card Protection without you knowing about it.

Beware of this.

just to add to above.....not many people know that this insurance actually doesn't work for self-employed....so beware....bank always gives it to you...you have 30 days from activation of card to cancel it with payiing anything. Ofcourse you can cancel anytime but you will pay thet's months fee is its more than 30 days. I work in a banks credit dept & always recommend people to take a look at how it benefits their particular situation & cancel if they don't need as sales people from credit card dept will always call & try to sign you up for this & so many times I have come across self employed people paying for this when they actually cannot benefit from this insurance.

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Pooja

Wow - I didn't know.

Bottom line it is the worst insurance coverage you can buy.

welll...I won't say its the worst as again I have seen situations where someone is deep in debt & running pay chq to pay chq , just paying minimum payment every month & something unexpected happened...job loss/accident...atleast his minimum payment is covered & won't ruin credit & start collection calls.

It really depends on an individual situation.

And again as much as it may be beneficial for someone to take it, they have to weigh out how they are paying every month as insurance pymt depends on the balance, so if someone is trying to pay down & if financially not that bad as being left with pennies at the end of month....then may be they should not pay for this insurance but use this money as well to pay down the credit card debt.

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Pooja