Credit card insurance for death?

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kcerica
 
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Credit card insurance for death?

Postby kcerica » Mon Mar 21, 2011 10:39 am

An older unhealthy friend needs a cosigner to get a credit card, I know he'll pay monthly payments but I am worried that if he has a big balance if something happens to him (if he dies) I'm assuming the cosigner be stuck owning the bill? I don't know much about credit cards at all but I think I remember seeing an option (I don't even know what the name of the option is) but it's something like protection if you lose your job you won't be hounded for the money that is owed on your credit card so I'm wondering if credit cards have an option for the next of kins or cosigners incase of death of the applicant.
Thanks for any info about this


DoingHomework
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Postby DoingHomework » Wed Mar 23, 2011 11:56 am

The best way would be to have him buy life insurance for the amount of the credit limit with you as beneficiary. It might not be cheap but I would insist on it. Make sure he pays the premiums to you so you can make sure they are paid.

This is a bad situation all in all. I would avoid it.

jeffysdad
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Postby jeffysdad » Fri Mar 25, 2011 7:25 am

Ditto what DH said.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Apr 11, 2011 1:29 pm

The credit card payment protection plans are almost never worth the money. In your circumstance however, it might make more sense than it would for the average person but I have no idea if buying the plan for someone that is expected to die soon would even be legal so you would need to research that aspect, too.

I agree though that the ideal solution would be to buy life insurance but if he is in bad shape I understand that may be hard to do.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
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Primary Travel Card: Chase Sapphire Preferred



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