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Got the axe...how does CC insurance work?


whocares
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Yes, there are stipulations. For example, if you just got the insurance 10 days ago, then you are likely SOL, there are time frames that are in the neighborhood of 30, 60, & 90 days. You will have to read the documents to see what the timing is on each account. You will have to provide documentation that you have been laid off as well as being eligible for unemployment. Basically you just need to call the card companies and I a sure they will send you the paperwork.

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In the majority of cases you find out that overpriced "insurance" you bought that paid the credit card company up to 70% of the premium in commissions is full of exclusions and terms and conditions that are onerous to the point that you wonder why you ever took it out.

These "policies" are very bad value for money. If you make it through all the hoops you are invited to jump though for the amusement of the adjusters expect a much smaller return than you first thought, and a deductible "period" that stretches the boundaries of reasonability.

Credit insurance is a profit centre for lenders and the "insurers" (often wholly owned off shore protected cell coporations) are notorious for avoiding claims where at all possible.

Contact the creditors and ask for them to send claim forms together with a copy of the policy wording and terms and conditions (you will need them) Do everything in writing and expect to be hung out to dry. It is possible to make a successful claim in some circumstances but many more people fail than succeed many by simply giving up after being frustrated by the tactics of the insurers at a time when the last thing people need is additional stress and difficulty.

Personally I out take credit insurance from a creditor with the same frequency that I take out an over priced restrictive warranty from a retailer, i.e. never.

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I knew I would be laid off sooner or later, company has laid off 80 of it's workforce...

Cards have all been insured over 6 months...

But if I use the insurance does this restrict my overall credit I have several cards from the same issuer...will they lower my limits? Will they close my accounts while using the insurance?:-)

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I knew I would be laid off sooner or later, company has laid off 80 of it's workforce...

Cards have all been insured over 6 months...

But if I use the insurance does this restrict my overall credit I have several cards from the same issuer...will they lower my limits? Will they close my accounts while using the insurance?:-)

Beware if you actually KNEW as opposed to like many people in today's tough economic climate worried about the possibility that you may be laid off then you had a duty of material disclosure that you have breached and is grounds for repudiation of your claim in total. Be very very careful with your choice of words when dealing with an insurance claims department.

Read your T & C for each card/credit provider. Triggering the insurance can sometimes constitute a default or termination. You need to see exactly how each card issuer deals with the situation.

It is a common reason why people drop claims under these policies and struggle to continue to make payments.

In any event do not expect to be able to continue using the cards whilst any payments under an insurance claim are in effect. You would be perceived as a moral hazard. Any increase in the credit would expose the lender to default risk and in today's market I do not see that as being something they would agree to But that said stranger things have happened in life - someone has to win the lottery every now and then!

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I knew I would be laid off sooner or later, company has laid off 80 of it's workforce...

Cards have all been insured over 6 months...

But if I use the insurance does this restrict my overall credit I have several cards from the same issuer...will they lower my limits? Will they close my accounts while using the insurance?:-)

they will not allow you to use them while the insurance is paying..you will be in "limbo" until your either paying or the insurance runs out

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