disability insurance http://www.wisebread.com/taxonomy/term/8036/all en-US Financial IQ Test: How Healthy Is Your Disability Insurance? http://www.wisebread.com/financial-iq-test-how-healthy-is-your-disability-insurance <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/financial-iq-test-how-healthy-is-your-disability-insurance" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000010529169XSmall.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="166" /></a> </div> </div> </div> <p>Disability Insurance (and the integrity of your own coverage and how it suits your needs) is serious business; One in three people are disabled during their working lives, and those disabled for more than two months have an average disability length of two and a half years. Can you cover your expenses if you can&rsquo;t work for that long?</p> <p>Following is a Financial IQ Test to help you determine how healthy your disability insurance policy is. <strong>Simply look at each statement, and answer it with a YES, NO, or NOT SURE.</strong> Keep track of your answers, and we'll see how you score at the end. Then, check out the resource articles below to increase your knowledge base.</p> <h2>Financial IQ Test: How Healthy Is Your Disability Insurance?</h2> <h3>Disability Insurance Lingo</h3> <p>I understand the difference between the &ldquo;any occupation,&rdquo; &ldquo;regular occupation,&rdquo; and &ldquo;own occupation&rdquo; definitions of occupational coverage.</p> <p>I understand the difference between Short-Term Disability and Long-Term Disability plans.</p> <p>I understand some of the inherent pitfalls of employer disability insurance, and have weighed out the benefits and drawbacks.</p> <p>I know that pregnancy-related disabilities are almost never covered.</p> <p>I know what the exclusions are on my disability insurance policy.</p> <h3>Best Value</h3> <p>I have minimized my premiums by selecting an appropriate waiting period, benefit period, and benefit amount.</p> <p>I comparison shopped for disability insurance.</p> <p>I checked with my local industry association to see if they offer discounted disability insurance plans.</p> <p>I decline coverage offered by telemarketers from my credit card company.</p> <h3>Policy Structure</h3> <p>I have considered a waiver of premium rider, to reduce my expenses in the event of a disability.</p> <p>I pay for my disability insurance premiums with after-tax dollars only.</p> <p>I have a cost of living adjustment on my policy which indexes my benefit amount to the rate of inflation.</p> <p>My policy is non-cancelable (as in the insurance company can&rsquo;t cancel the policy; I can if I choose to).</p> <h3>Due Diligence</h3> <p>I have estimated what my monthly expenses will be (aside from medical expenses) if I am disabled.</p> <p>I know how long I can live without an income, and have structured my disability insurance policy to start payments before I run out of money.</p> <p>I considered the insurance company&rsquo;s financial ratings before buying a policy with them.</p> <p>I am aware of (and take advantage of) the &ldquo;free look&rdquo; period once I get my policy, to read it through carefully and ensure it reflects my needs.</p> <p>I have looked into Long Term Care or Critical Illness insurance as possible alternatives or complements to a disability insurance policy.</p> <h2>Scoring</h2> <p>Did you keep track of how many times you answered YES, NO, and NOT SURE? Great! Give yourself the following points for each answer:<o:p></o:p></p> <p><strong>YES = 4 points</strong></p> <p><strong>NO = 0 points</strong></p> <p><strong>NOT SURE = 2 points</strong></p> <h2>Analysis</h2> <h3>0-24: Don&rsquo;t Go Play with Traffic</h3> <p>Did you know that the biggest asset you have in life is your income &ndash; and your ability to keep generating it? If you haven&rsquo;t looked at disability insurance, maybe you should. Some even have features like &ldquo;Return of Premium&rdquo; riders that give you your money back at the end of a term if you don&rsquo;t make a claim. It&rsquo;s like insurance&hellip;for your insurance!</p> <h3>25-48: Covered&hellip;but how well?</h3> <p>You&rsquo;ve taken some time to find out what you need to know about Disability Insurance, but you may not have covered all your bases. Look into anything in the questionnaire that you didn&rsquo;t quite understand, and you may find a way to save money, or better protect your needs.</p> <h3>49-72: Sorted</h3> <p>You&rsquo;re at the top of the curve &ndash; congratulations! This means you probably have done your due diligence, research, and made the disability insurance decisions that are best for you. (Either that or you lied on the test)! Have a peek at some of the articles below to broaden your knowledge or fill in any of the gaps from the test.</p> <h2>Disability Insurance Articles to Increase Your Score</h2> <p><a href="http://www.wisebread.com/disability-insurance-payments-and-pitfalls">Disability Insurance: Payments and Pitfalls</a></p> <p><a href="http://www.wisebread.com/mib-the-big-brother-for-insurance-companies">MIB: The Big Brother for Insurance Companies</a></p> <p><a href="http://www.wisebread.com/long-term-care-insurance-for-wise-bloggers">Long Term Care Insurance for Wise Bloggers</a></p> <p><a href="http://www.wisebread.com/critical-illness-insurance-for-wise-bloggers">Critical Illness Insurance for Wise Bloggers</a></p> <p><a href="http://www.wisebread.com/credit-card-insurance-no-thanks">Credit Card Insurance? No Thanks</a></p> <h2>Other Financial IQ Tests on Wise Bread</h2> <p><a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-debt-management">FINANCIAL IQ Test: How Healthy is your Debt Management?</a></p> <p><a href="http://www.wisebread.com/financial-iq-test-how-healthy-are-your-bank-accounts">FINANCIAL IQ Test: How Healthy are your Bank Accounts?</a></p> <p><a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-budget">FINANCIAL IQ Test: How Healthy is your Budget?</a></p> <p><a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-health-care-plan">FINANCIAL IQ Test: How Healthy is your Health Care Plan?</a></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nora-dunn">Nora Dunn</a> of <a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-disability-insurance">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/health-care-reform-good-for-people-like-me">Health Care Reform: Good for People Like Me</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/health-insurance-two-other-numbers-to-look-at">Health insurance: Two other numbers to look at</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/eight-natural-ways-to-make-water-more-flavorful">Eight Natural Ways to Make Water More Flavorful</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/generic-drug-price-lists-for-six-major-pharmacies">Generic Drug Price Lists For Six Major Pharmacies - Updated</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/will-a-dental-discount-plan-save-you-money">Will A Dental Discount Plan Save You Money?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Health and Beauty Insurance disability insurance financial IQ Test Sat, 27 Mar 2010 09:00:07 +0000 Nora Dunn 6062 at http://www.wisebread.com Disability Insurance: Payments and Pitfalls http://www.wisebread.com/disability-insurance-payments-and-pitfalls <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/disability-insurance-payments-and-pitfalls" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/Disability ins.jpg" alt="crutches" title="crutches" class="imagecache imagecache-250w" width="250" height="376" /></a> </div> </div> </div> <p class="MsoPlainText">A massage therapist hurts their hand in a silly accident playing volleyball. For most of us, a broken finger or torn ligament in our hand is a serious inconvenience, but not an insurmountable one. For the massage therapist, it is their career. </p> <p class="MsoPlainText">Until that therapist’s hand is better, they are considered totally disabled. If they don’t have insurance, their only option is to find another job until their hand is in good enough shape to return to massage therapy, which could take many months or even years. Meanwhile, the therapist can’t devote the time necessary to find a replacement for their clients (because they are working at another possibly lower paying job), and they may lose their client base and career in so doing. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">There is another way. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">Disability Insurance (DI) is yet another tool in the arsenal of insurance products that may be a life-saver for some people, but that also can unveil some bitter surprises at the worst times. Let’s look at the facts: </p> <p class="MsoPlainText">&nbsp;</p> <h2>Three Definitions of Occupation</h2> <p class="MsoPlainText">All disability insurance policies will operate under one of three different definitions of occupation which determine the level of coverage you receive: </p> <p class="MsoPlainText"><strong>Any Occupation</strong></p> <p class="MsoPlainText">This is the least expensive (and of course the least comprehensive) form of coverage you can have. It states that the insurance company will pay out disability benefits if you cannot perform “<em>ANY occupation</em>” for which you are reasonably skilled, trained, or capable of being trained for. </p> <p class="MsoPlainText">So although you are a massage therapist and are paralyzed from the neck down, if the insurance company thinks you could sell pencils over the phone, you are out of luck for getting any benefits. (This is an exaggeration of sorts, but you may be surprised at how close to the mark it is). </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>Regular Occupation</strong></p> <p class="MsoPlainText">The insurance company will pay benefits if you are unable to perform the duties of your “<em>regular occupation</em>”. So as a massage therapist, you will receive disability benefits if you can’t perform the job of a massage therapist. The catch is, they’ll fight your claim if you can’t attend to your own clientele in the clinic you work in (because of stairs, or a specialized kind of massage therapy), but you can still work within the <em>field</em> of massage therapy – just somewhere else or outside of your specific area of expertise. </p> <p class="MsoPlainText">However having said that, this is the most common form of insurance people purchase. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>Own Occupation</strong></p> <p class="MsoPlainText">This is the crème-de-la-crème of definitions of occupation, and is only usually purchased by very specialized (and high-income) medical professionals and executives. It is rarely if ever part of a workplace group disability plan. </p> <p class="MsoPlainText">It states that if you are unable to perform the duties of your “<em>own occupation</em>”, you will receive benefits. So if a specialized doctor can’t attend to their own patients in their own clinic, they will receive benefits. (Never mind if the doctor could perform medical services elsewhere or in a different area of specialty). </p> <p class="MsoPlainText">&nbsp;</p> <h2>Two kinds of Disability Insurance</h2> <p class="MsoPlainText"><strong>Short Term Disability (STD)</strong></p> <p class="MsoPlainText">STD is typically only used as a rich benefit by workplaces, as it is cost-prohibitive for individuals and can often be circumvented with proper emergency fund planning. It provides for a replacement of income if you are disabled starting as early as three days after the disability occurs, and lasting up to six months (usually 90 days though). </p> <p class="MsoPlainText">Some workplaces will provide short term disability coverage, but not through an insurance company. Instead they will pay your salary out of pocket until the long term disability coverage kicks in, as they see it as being less expensive overall than paying the pricey premiums for STD. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>Long Term Disability (LTD)</strong></p> <p class="MsoPlainText">This is the most common form of insurance (both within workplaces and for individuals requiring coverage). The average policy has a 90 day waiting period, and benefit periods ranging from two years to age 65. </p> <p class="MsoPlainText">&nbsp;</p> <h2>Important Terminology</h2> <p class="MsoPlainText"><strong>Waiting Period</strong></p> <p class="MsoPlainText">Sometimes referred to as the qualifying period or elimination period, this is the amount of time you have to wait between when the disability occurred and when you will start to receive payments from the insurance company. The longer the waiting period is, the less expensive your premiums will be. (The flip side being of course that you have to foot your own expenses for that length of time). </p> <p class="MsoPlainText">The standard waiting period for Long Term Disability is 90 days, but can be as long as 180 days or as short as 30 days. Short Term Disability can have waiting periods as short as just a few days. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>Benefit Period</strong></p> <p class="MsoPlainText">Although this goes by a few different names as well, it refers to the length of time disability payments will continue once they start. If you have a two-year benefit period with a 90 day waiting period, then you will receive two full years of payments starting 90 days after you became disabled. It is worth noting that payments will stop as soon as you are deemed able to resume your work, even if the benefit period has not yet expired. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>Benefit Amount</strong></p> <p class="MsoPlainText">This is the amount of money that is paid each month as disability income. There are regulations around how big the benefit amount can be (usually a maximum of 70% of your gross salary), since insurance companies don’t want to fully replace your pre-disability after-tax income. The rationale is that if your cash flow is fully replaced while disabled, you don’t have much incentive to get better and off the DI cheques. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>Premiums</strong></p> <p class="MsoPlainText">This is the monthly fee you pay for your insurance. The shorter the waiting period, the more you pay. The longer the benefit period, the more you pay. The higher the benefit amount, the more you pay. The older you are, the more you have a volatile family medical history, or a volatile personal medical history, the more you pay. </p> <p class="MsoPlainText">Some policies lock in your premium rates for life based on your age, health, and medical history at the time of application. Other policies will rate the premiums, increasing them every few years (and within this realm some will guarantee what your rate increases will look like while others retain the right to increase premium rates by any amount and at any time). </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">&nbsp;</p> <h2>Perilous Pitfalls</h2> <p class="MsoPlainText"><strong>Taxation of Premiums and Benefits</strong> </p> <p class="MsoPlainText">In Canada (and I believe in the U.S. too), how you pay your premiums affects how the benefits are taxed. This is especially important, because if your DI benefit payments are taxable and are only 70% of your gross salary to begin with, you will be lucky to end up with half of what you used to bring home after-tax to live on (and with possible increased medical expenses to boot). </p> <p class="MsoPlainText">Basically if you deduct your DI premiums from your taxes (which those who are self-employed are entitled to do as a cost of doing business), your benefit amount will be taxable. If you instead use after-tax dollars to pay for your premiums, then the DI benefit amount is non-taxable. </p> <p class="MsoPlainText">Hence, my advice is almost categorically to ensure that you <strong>do not</strong> deduct your premiums, and if participating in a workplace plan ensure your employer is not paying for the premiums and instead is deducting them from your net pay. A little short term premium pain will result in long term survival if you become disabled and dependant on the benefits being tax-free. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>Making Claims</strong></p> <p class="MsoPlainText">Although you may have a legitimate disability claim and a waiting period of a few weeks, you may be surprised to discover that the cheques aren’t flowing like they should at the end of your waiting period. </p> <p class="MsoPlainText">In order for your DI payments to start, the insurance company needs to make darn sure that your claim is legit. So they will order third party doctor’s reports, additional tests, or other forms of clarification to ensure they are really on the hook. This can take time, and often surpasses the initial waiting period. Rest assured that once approved, payments will be retroactive, but it can be a terribly sore bone of contention for those in need of benefit payments. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>A Note About Group Disability Plans</strong></p> <p class="MsoPlainText">Many people rest well at night knowing that they have disability insurance coverage through work. What they don’t know is that they might only have an LTD plan, with a waiting period of 6 months, a benefit period of two years, “any occupation” as their definition of coverage, and their premiums are fully paid for by their employer and not taxed. This means that the employee is on the hook out of pocket for 6 months after the disability occurs, they have to be severely disabled to even qualify under the “any occupation” definition, and even if they do qualify their benefit amount will be fully taxed such that they will be lucky to see even half of what their previous take-home pay was. </p> <p class="MsoPlainText">Or, work plans will often cover under the “regular occupation” definition for the first two years, then switch to “any occupation” until age 65. People take comfort in thinking that they have coverage to age 65, but realize sadly that after two years they are being denied coverage because they are reasonably skilled or trainable for another job under the “any occupation” definition. It is worth noting that statically speaking, the average length of a long-term disability is longer than two years. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">Do I think that people need disability insurance? Absolutely I do. But I also think that people who have coverage and think they’re golden should carefully examine their policies to ensure they don’t get caught in the typical DI pitfalls and end up penniless (and bitter with insurance companies) when they are in critical times of need. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">If you want to re-examine your policy for cost-effectiveness, check out <a href="/save-money-on-insurance" target="_blank">this article</a> with a tool to help you potentially save a few extra bucks. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><em>Disclosure: I have no affiliation with any insurance companies or vested interest in disability insurance.</em> </p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nora-dunn">Nora Dunn</a> of <a href="http://www.wisebread.com/disability-insurance-payments-and-pitfalls">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/financial-iq-test-how-healthy-is-your-disability-insurance">Financial IQ Test: How Healthy Is Your Disability Insurance?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/could-happy-hour-help-you-better-manage-debt">Could Happy Hour Help You Better Manage Debt?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-money-moves-to-make-before-the-leaves-change">10 Money Moves to Make Before the Leaves Change</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-personal-finance-letter-id-write-to-my-younger-self">The Personal Finance Letter I&#039;d Write to My Younger Self</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-borrow-student-loan-money-from-amazon-prime">Should You Borrow Student Loan Money From Amazon Prime?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance disability insurance long term disability qualifying period short term disability waiting period Fri, 07 Dec 2007 02:10:51 +0000 Nora Dunn 1475 at http://www.wisebread.com Credit Card Insurance? No Thanks. http://www.wisebread.com/credit-card-insurance-no-thanks <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/credit-card-insurance-no-thanks" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/credit_0.jpg" alt="credit cards" title="credit cards" class="imagecache imagecache-250w" width="250" height="250" /></a> </div> </div> </div> <div style="margin: 1em; float: right;"><script type="text/javascript"> digg_url = 'http://www.wisebread.com/credit-card-insurance-no-thanks'; </script> <script src="http://digg.com/tools/diggthis.js" type="text/javascript"></script></div> <p class="MsoPlainText"><span>So your <a title="Guide to Using Credit Cards Wisely" href="http://www.wisebread.com/credit-card-guide">credit card</a> company just called offering you balance protection insurance against <a title="I Lost My Job - Tips for the Recently Unemployed" href="http://www.wisebread.com/lost-my-job-tips-for-the-recently-laid-off">job loss</a>, disability, life, or critical illness. The cost will be just pennies, calculated monthly based on your outstanding balance. </span></p> <p class="MsoPlainText"><span>Do you take it? </span></p> <p class="MsoPlainText"><span>The question is: have you performed an insurance needs analysis, or will you just make the decision to take the insurance based on impulse and instinct? </span></p> <p class="MsoPlainText"><span> </span></p> <p class="MsoPlainText"><span>There are typically four different types of credit card insurance: </span></p> <ul> <li><span><strong>Involuntary Job Loss</strong>: This pays your monthly minimum payment for a specified period of time after you lose your job through downsizing or layoffs. </span></li> <li><span><strong>Disability</strong>: Like above, your monthly minimum payment is covered for a specified time period upon becoming disabled and unable to work. </span></li> <li><span><strong>Critical Illness</strong>: Similar to above.</span></li> <li><span><strong>Life or AD&amp;D</strong> (Accidental Death &amp; Dismemberment): If you die, your entire credit card balance will be paid. </span></li> </ul> <p class="MsoPlainText"><span> </span></p> <p class="MsoPlainText"><span>The cost may initially seem small at between $0.75 and $1.50 per $100 of outstanding credit card balance each month, but in the spirit of being frugal, is that money wisely spent? </span></p> <p class="MsoPlainText"><span>Consider the fact that with the exception of credit life protection, this insurance doesn't actually pay off your debt. It simply makes the minimum payments on your outstanding balance for the term of the contract. In fact, depending on the credit card and interest charges, you may sometimes find that the balance at the end of the contract is actually higher than when the claim occurred due to compounding interest. </span></p> <p class="MsoPlainText"><span>Are those minimum payments something that would cripple you financially in the event of an illness or job loss? The answer will be different for everybody - this is just food for thought. </span></p> <p class="MsoPlainText"><span> </span></p> <p class="MsoPlainText"><span>Similar to individual <a target="_blank" href="/critical-illness-insurance-for-wise-bloggers">Critical Illness</a>, Disability, or <a target="_blank" href="/choosing-life-insurance-term-or-permanent">Life Insurance</a> policies, there are a few things that bear consideration in order to make a sound decision:</span></p> <ul> <li><span><strong>What are the terms of the policy?</strong> (For example, what are the specific definitions under which the insurance company will pay)?</span></li> <li><span><strong>What coverage do you need?</strong> If you lose that income or become ill, will minimum payments on your credit cards be of benefit to you, or do you have other funds that will suit the purpose? </span></li> <li><span><strong>What coverage to you already have?</strong> There is no point in duplicating your insurance coverage if you already have a CI policy in place.</span></li> <li><span><strong>In the case of job loss insurance, what are the exact terms?</strong> You may be surprised at the restrictions of this initially appealing option.</span></li> <li><span><strong>Is it cost effective?</strong> As a case study, let's examine the life insurance as an example. On a $10,000 credit card balance, at $0.80 per $100 of outstanding balance, your monthly charge would be approximately $80/month. For $80/month, a 35year old non-smoking female in good health can purchase upwards of $500,000 of Term Life Insurance. </span></li> <li><span><strong>Can you cancel the policy, and under what terms?</strong> If you do decide to take it, make sure you keep all your documentation together so cancelling it when the time comes is easy.</span></li> <li><strong><span>Are you insurable? </span></strong><span>Many balance protection policies don't require any evidence of insurability to qualify. If you have medical issues that make you a higher risk such that individual policies would either be cost-prohibitive or unavailable to you, then maybe this is just the protection you need.</span></li> </ul> <p class="MsoPlainText"><span> <br /> On the flip side, one type of credit card insurance that you may not realize you might automatically have is travel insurance. Many credit cards feature automatic flight and travel coverage if you pay for a trip using that card. In fact, before you go out and purchase travel insurance, it bears calling your credit card company to find out the specific terms of their coverage. You may find that you can save a few extra bucks by not having to go out and get extra travel coverage! </span></p> <p class="MsoPlainText"><span> </span></p> <p class="MsoPlainText"><span>As with all insurance policies, take a good hard look at what you need, what you can afford, and whether the &quot;easy option&quot; being offered to you over the phone is going to be easy in the long run. </span></p><br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nora-dunn">Nora Dunn</a> of <a href="http://www.wisebread.com/credit-card-insurance-no-thanks">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/everything-you-should-know-about-getting-a-credit-card-but-didn-t-have-a-clue-to-ask">Everything You Should Know About Getting a Credit Card but Didn’t Have a Clue to Ask</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards">The 5 Best 0% Balance Transfer Credit Cards</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/top-5-travel-reward-credit-cards">5 Best Travel Reward Credit Cards</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-best-cash-back-credit-cards">5 Best Cash Back Credit Cards</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-best-secured-credit-cards">The 5 Best Secured Credit Cards</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards accidental death balance protection insurance credit card insurance critical illness insurance disability insurance job loss protection life insurance Mon, 22 Oct 2007 22:46:28 +0000 Nora Dunn 1314 at http://www.wisebread.com