Credit Card Insurance tips for Network Marketers

Written by Peter Wright on Dec 8, 2010 8:08 pm

Many new Network and Internet Marketers finance their entry into, and early survival in the business with credit cards, often maxing out several before their cash flow turns positive. I know I did it and thousands more will continue to do it.

Unless accounts are current, most credit card companies require the cardholder to pay a monthly insurance premium to cover the amount owing in the event of death, disability or in some cases unemployment.

Credit card companies terms and conditions differ and not just on interest rates. The small print on insurance policies is about as boring as any other legal jargon so few of us ever bother to read it.

We should. Here is my experience.

After surviving a heart attack in September, I looked at the insurance policies for my two credit cards and realised that I could claim on both of them. After seeing the words "heart attack’" included in the definition of "critical illness resulting in disability" in the document for the first card and then realising that both credit card companies used the same insurance company, I thought that I would have both credit cards cleared completely.

Bad assumption, after submitting claims for both cards, one paid out the full amount outstanding at the time of my heart attack. The other paid out around the minimum monthly payment pro-rated because of a waiting period, with a promise of a further minimum payment a month later. No further payments without an updated doctors letter certifying that I am unable to do any income producing work. That’s not going to happen.

Not a big problem for me, I am very grateful that one of my cards was cleared. The outstanding amount on the other was much lower.

But it’s worth checking out before running up big outstanding balances.

Worrying about credit card debt is one problem we don’t need after a serious illness, accident or loss of income.