Do you protect your best friend? CC? Yes, I am very serious…CC. Your Credit Card…well you should.
As a mom, a wife, a modern chic; life happens. For a while I had this cash only policy but let’s be realistic that is tough. It is easy to fall into a “charge” and pay later life style. Wouldn’t you agree?
I came across something that I normally ignored, which is Credit Protection. Seriously, insurance for the credit cards you use. Who cares, right?
So, I have three beautiful sons and had to take maternity leave. For my first son, I had three jobs and my husband worked furiously but we were just making it. Then I went on leave and took sixteen weeks. Because the daycare I needed would not take a baby less than four months, so push came to shove and I had to stay home. The financial ripple became a title wave when the bills started coming in.
One morning I was looking over one of my credit charges and it said “$0.89 protection fee”. I inhaled this and got so angry thinking it was a complete scam. Finances were so tight already. For that $0.89 bogus charge, I called them.
We went over the bill and as I was about to request an extension. “Jenny” the rep started explaining the charge. She then goes to say, “well like, if you ever have a baby or a surgery things like that you can put a claim in and we will cover your monthly installment or if you a customer that pays their credit lender on time we may even cover your balance” I questioned her for about 30 minutes not understanding that all this time I have been paying for insurance for my credit cards that I was actually and finally entitled to enjoy that benefit. So, I told her I just had a baby. What came next was gold.. “well, I see here that you have two cards with our insurance (from different credit lenders) and how long will you be out of work?” She asked. I explained 16 weeks. She said “I will send you the paper work, complete it from your physician and employment and they will let you know what you are approved for.” Honestly, not believing anything would happen. I said simply sure.
One week the paperwork came. I asked my immediate supervisor/employer to fill out a portion and my doctor to full out the portion that applied to my situation. I sent the paperwork in immediately. I received a response about two weeks later that said I was entitled to full balance. When my charge statements came in I had a zero balance and almost fainted. They cover $1500 for one charge and $2300 for another. Complete.
I looked at the pile of bills and said wait what all about this. It turns out I had insurance on all my charges, my vehicle, my home, my pets etc. I called anything that I realized I was paying insurance (boy, I felt like an idiot) put all the claims in.
In the next, couple of months I received letter back: some covered balances, some just the monthly installment, some just froze until I came back, which didn’t add interest, and some gave me a new rate, a low rate in lieu of the normal rate, only one was denied but that was because it had a time limit.
We were about 90% paid for the next four months.
Baby two, did the same thing but this time I was 100% covered.
Baby three, same thing. Why? Why not! This is the policy I signed up for AND I have the opportunity to utilize the resources that I have paid for. I am now constantly making sure we have insurance on any and everything. I pay about $1.00 a month to be covered for credit. About $39.00 for pet insurance. My children have their own policies, which will become liquid for college.
And, most of my protections don’t just cover maternity leave, they cover all leaves, changes, certain deaths, life changes – like moves…etc.
This was definitely the smartest financial application I ever filled out.
We need to not always be sucked in but be researchers, identifiers, and yogis of our financial health. If your sick you try to help your self to get better. Do the same for your finances.
And have a #fannytastic life!