Credit Card Insurance, worth it?

I believe almost every credit card users had been offered a new type of insurance - credit card insurance.

What is credit card insurance?

  • it insured you of the outstanding amount owed in your credit card
  • it covers death and disablement of credit card holders
  • it charges card holders an insurance premium annually normally

And, in my case, it offers me a better plan which only charge me if there is any outstanding credit card loan. If you're a prompt paymaster, this is definitely the better option for you. If you agreed on the deal, all you need is to answer 'YES' through the phone. Then, they will issue a contract notes and mail to your home address.

Ya... Pretty easy and convenient though.
But, is it worth to have such insurance?

Finance Malaysia opine that it is not worth, and its a waste of money because of the following points:-
  • Credit card supposed is for our ease of making purchases, especially for those 0% installment deals.
  • Those who opts credit card loans would have been due to financial constrain.
  • By charging extra premium on top of the loan amount will UP the outstanding loan amount, thus, the monthly repayment.

Comments

Post a Comment

Popular posts from this blog

A Malaysian Guide to Home Buying Fees & Charges

Image
Like any other country, buying a house and taking a  home loan  / mortgage in Malaysia involve legal  fees & charges  - which many people fail to take into consideration especially when they’re buying a property for the very first time. So to all Malaysians buying your dream houses right now, allow iMoney to show you ALL the fees and charges involved when you buy a house or apply for a home loan.
Read more

How Can A Profit-Guaranteed Investment Be Risky?

Image
Investment professionals love complicating things. Trust me on that. I was once like that. You don’t believe me? The next time you meet people from the investment industry, try asking them to give you a definition of the word “risk”. Investopedia defines “risk” as “the chance that an investment’s actual return will be different than expected...risk is usually measured by the standard deviation of the historical/average return of a specific investment.”   Don’t get me wrong. This is actually a pretty good definition of "risk”... that is if you speak finance. But most people don’t, and if you are like most people, you probably struggled to understand even the first sentence (actual return vs expected return...huh?). Good luck attempting to measure risk! Then, what does RISK mean? Complicated definitions aside, many investment professionals define “risks” consistent with the above definition i.e. in terms of “ uncertainty ” (or “volatility...
Read more

Interviewing Catwalk Guru Benjamin Toong

Image
After interviewing Amber Chia, the Malaysia born international supermodel, this is the second episode. For those who missed the interview, please read " Interviewing International Supermodel Amber Chia " dated 11 April 2011. In conjunction with this, Finance Malaysia Blog continue to highlight some of those successful Malaysian. We strive to bring out the hidden success story of Malaysian, and we are proud to present to you Catwalk guru - Benjamin Toong. Some profile of Benjamin Toong: Founder of Runway Productions Crowned as the catwalk guru of Malaysia in year 2010 3 years experience in runway training, fashion stylist and runway choreographers Fashion stylist for local and international fashion magazines Judge and Professional Runway Trainer for Ford model Supermodel of the world Malaysia 2009 Official stylist of Jiayu Astro CH304 Co-founder of AmberChia Academy The Interview In Malaysia, many people perceived that modelling is of western culture. Can you tell us HOW and...
Read more