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| waltman |
 Posted: Mon Apr 24, 2006 5:59 am Post subject: CC Payment protection plans a waste of money? |
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Investing Sr. Associate
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I saw an article in Money magazine that was very down on those "payment protection" plans that most of the credit card companies offer. The deal is they will let you skip your minimum payment if you are out of work or get sick, but the article said they are costly and there are lots of rules about when it can kick in.
The guy in the article said a much better deal is disability insurance. If your workplace offers that, great, but what if it doesn't? I called a local insurance guy, and the disability plans seemed pretty expensive.
I guess the bottom line is - anything your credit card company wants to sell to you that bad can't be a very good deal for you! |
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| bigdave |
| Posted: Sun Apr 30, 2006 12:32 pm Post subject: |
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Investing Sr. Associate
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| yes stay away from these plans just be smart and dont carry balances. |
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| MrT |
| Posted: Mon May 01, 2006 5:38 am Post subject: |
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Investing Sr. Associate
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| Yeah, whether or not they are a good deal, they are still biased as you lender, so they should not be the ones to sell you disability insurance. I think most people should have some kind of disability insurance though. I would have gotten some independently, except my work has some level of insurance, so I feel safe. I think disability insurance is becoming more common, and almost as necessary as life insurance. Just think, if you are disabled, and can't work, your family won't get a life insurance payout, so it really puts you in a bind. Social Security Disability kicks in, but it really is a minimum amount, which will only make a dent in the bills for all of us who perfer to carry low-interest debt in anticipation of future income. |
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| DKnightSr |
| Posted: Mon May 01, 2006 4:37 pm Post subject: |
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Member of the Month
May
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| MrT wrote: | | Yeah, whether or not they are a good deal, they are still biased as you lender, so they should not be the ones to sell you disability insurance. I think most people should have some kind of disability insurance though. I would have gotten some independently, except my work has some level of insurance, so I feel safe. I think disability insurance is becoming more common, and almost as necessary as life insurance. Just think, if you are disabled, and can't work, your family won't get a life insurance payout, so it really puts you in a bind. Social Security Disability kicks in, but it really is a minimum amount, which will only make a dent in the bills for all of us who perfer to carry low-interest debt in anticipation of future income. |
Mr T, you are absolutely correct. When the lender sells the insurance they get a cut off the top (commision). If you are a believer in disability insurance, go directly to an insurance agent... that way he works for you, not the other way around. My house/car insurance agent has it, though I don't participate... and when we talked about it his rates weren't near what the "cc" companies had. However, check the fine print on your Soc Security disability and any disability clauses in your employer/union's documents. You might not need quite as much as you might think.
I'm not saying don't do it, I'm just saying an informed decision is always the best decision. |
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| FunkDaddy |
| Posted: Sun May 14, 2006 4:38 pm Post subject: |
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Investing Associate
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| DKnightSr wrote: | | Mr T, you are absolutely correct. . |
Hehe |
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