I found out, after renewing a credit card, that I had been paying for
insurance that I wasn't aware of. This insurance would pay benefits
in case I died or became disabled. I had the card since 1997 and became
disabled in 1998 (Parkinson's). I called a credit card rep and she
advised me to put in a claim. She also stated if there were any
other balances to transfer, I could transfer them and clear them up
also. Could this be true?
Thanks for writing! I'm
sorry to hear about your disability.
It's very common that people pay for something on their credit card that they don't even know
about. It's usually some type of insurance (as in your case) or a buyer's
advantage program, or other membership package. This happens because
people agree to sign up for the "free trial" but
then forget to cancel after the trial period. This is probably what
happened in your case.
Despite having previously paid for
insurance that you were unaware of, it's going to work out because
you can actually put in a claim. It sounds like they're
willing to cancel all your debt with the claim. I don't know the
details of the insurance, but that's what I'm getting from your
The only thing I'm wondering about is
why the credit card rep advised you to transfer your balance to the
card and then put in a claim. This doesn't make sense because the
bank would be giving you money then expunging the debt.
I guess it's possible that the rep
was giving you an "insider tip," but I would still be
cautious. Either way, if their transfer rate is better than your other
cards, then it's certainly smart to transfer your balances to this
To be sure of the details, you must
get a copy of the original policy. If you do not have it, ask them
to send you a copy. Read it carefully before you do anything. You
don't want to be tricked into voiding the possibility of using the
insurance to your maximum advantage.
I would do the transfer and put in a
claim, as instructed by the rep. If they forgive the
debt--fantastic! If not, then keep the debt as long as the transfer
with them is the best option you have.
Good luck and please let me know what