When a person signs up for a credit card they do so knowing whatever money they spend they are going to need to pay back with interest. If something happens a person will still need to pay this bill even if they are injured. There is protection from harm in the form of credit insurance. Credit insurance will pay off the balance of the credit cards if a person dies. The insurance will also cover the minimum payment if a person becomes disabled or if they lose their job.
Credit insurance is not required. A person can opt to have this insurance and there is an additional fee if they choose to have this coverage. A credit card company cannot require that a person carry this insurance. They need to get it from the same company or financial institute that has given them the loan or the credit card. This insurance may be purchased as a group policy but there are also individual policies for those that want this extra protection. If a person claims this policy the money will be sent right to the lender. A person does not have to worry about the money being transferred to them and then having to pass it on and make the payment.
A person can pay for their monthly insurance in one lump sum or they can pay a monthly premium. This is based on what they feel more comfortable doing and what they need to fit into their budget. This single card does get added to the balance.
Credit insurance is an additional form of protection for this type of loan. If a person is worried about how they are going to pay the bills in case of an emergency they can get this insurance. It is optional but it will offer additional protection.