Tuesday, March 30, 2010

Read the fine (and even not so fine) print....

This happened to a person I know.  I'm not sure of all the details, but he had purchased insurance offered by a credit card - the type where if you lose your job, the insurance will make the payments for you.

He had been self-employed, then was hired as an employee somewhere, then a few months later laid off.  He apparently had not worked as an employee long enough to qualify for benefits, and since he didn't qualify for unemployement benefits the credit card insurance refused to pay.   Apparently it was in the contract.

So, if you're thinking about purchasing insurance to make credit card payments if you lose your job, make sure you understand the conditions that have to be met.  Apparently the simple (and currently easy) act of losing a job is not enough.

2 comments:

linlah said...

Sort of a bait and switch. Like I'm sorry your card isn't the right color to use that insurance didn't you read your contract?
Thanks for the heads up.

Heather said...

AND what is really sad is all the money he paid into the insurance is lost. I detest all insurances! You pay and pay and rarely ever see anything for your money.

So sorry for your friend.