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       In most cases, the only qualifying factors are that you are a cardholder in good standing with no current medical conditions that might cause you to become ill or disabled. In most cases, preexisting conditions are not covered, so even if you take the insurance, and you become ill because of the condition, it will not be covered. That doesn’t mean that you shouldn’t take the insurance if, for example, you have a back problem that may put you out of work in the future, because you may suffer an illness or disability that is not related to your back problem at all. You have to weigh each possibility and decide what the best course of action is. If your back has never caused you to lose work for more than a couple of days, then it probably will not happen to the degree that will require you to be out of work for any length of time – at least not any time soon.

The major issue that you do have to remember is the term “member in good standing,” which means that your account has to be up to date. Even if you have the insurance, and your account is past due, the insurance will not cover any condition you have because of the lapse in coverage. This is true of any kind of insurance, of course, but when you are paying monthly as you are with credit card insurance, if you miss one payment, the insurance lapses. Once your bill is up to date, the issuer may choose to reinstate it, but if they don’t reinstate the lapsed coverage period, you are now into the “preexisting condition” phase and won’t be covered. In order to prevent this from happening, if you have credit card insurance, make certain that you keep your payments up to date, even if you can only afford to pay the minimum payment – that will at least prevent your account from going into default and causing the loss of your insurance.

Another thing of which to be careful is your balance because your disability insurance will not cover any over limit fees or payments, and your life insurance will not cover any balance that is over the credit limit. On the disability, when it states it covers the minimum payment, that translate to the minimum payment based on your balance without over limit fees and without consideration for the portion of that balance that is over the limit. In other words, if your credit limit is $3,000, but your balance is $3,125, the insurance will make a minimum payment based on no more than $3,000. Likewise, with life insurance, if you should die, it will only cover a balance up to the amount of the credit limit.