Credit Card Insurance Is Another Gimmick

Terri wants to know if credit card insurance is a good idea to have. Dave explains that they're gimmicks and doesn't advise taking advantage of the offers.

QUESTION: Terri in Dallas wants to know if credit card insurance is a good idea to have. Dave explains that they're gimmicks and doesn't advise taking advantage of the offers.

ANSWER: I'll pass. I don't buy gimmicks. All of that stuff falls under the heading of "gimmicks."

Here's the deal. You should have long-term disability insurance through your work, and if you don't, you need to get it. If you become disabled, you've got the credit card covered that way, you're building your emergency fund in case you are laid off, and you’re working your way out of debt. You're going to pay yourself the insurance fee to insure against bad things happening while you have credit card debt.

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