What is credit card insurance?

Your bank or the company that issued your credit card may provide you with an insurance plan known as credit card payment protection. If you decide to sign up for the program, there is a possibility that a monthly cost may be assessed to your account.

You have the ability to put your payment protection plan into action in the event that a challenging life event, such as the loss of a job or a significant illness, occurs. The bank or card issuer might then put a hold on all of the costs associated with your card and continue to report positive information about your account to the credit reporting bureaus (CRAs).