This is something which is not often heard of. This kind of insurance is calculated for credit cards and done somewhat differently. It is assumed that initially there is no sum which might be outstanding. Actually the process involves using credit facility of the card and if the balance is not paid for a particular month, then the customer needs to be charged one percent of his / her credit card balance for that month and this is considered as the premium for the insurance. These are facts those should be known before dealing with protection insurance.
If both the parties involved match the criteria, then it wraps up with nominal refund against overdraft or loan. When this type of criteria is met, one can start searching some other ways to pay off the debt. In this process the period covered for insurance is typically long since the type of insurance is completely different than any other insurance say home insurance or auto insurance.
Posts
