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What do you think?

MaggieD said:
It's not unlike mortgage insurance. That's been around forever. (In that case, it's a decreasing term policy payable to the mortgage holder in the amount of one's outstanding balance.)
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Do you know anybody that buys mortgage insurance voluntarily?
 
FederalRepublic said:
Do you know anybody that buys mortgage insurance voluntarily?
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It's not the kind you're thinking of. You're thinking of private mortgage insurance that one is required to purchase when putting down less than 20% down payment. What I'm talking about isn't that. It's Mortgage Life Insurance. A decreasing term policy that pays the exact amount still outstanding on the policyholder's mortgage.
 
MaggieD said:
It's not the kind you're thinking of. You're thinking of private mortgage insurance that one is required to purchase when putting down less than 20% down payment. What I'm talking about isn't that. It's Mortgage Life Insurance. A decreasing term policy that pays the exact amount still outstanding on the policyholder's mortgage.
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This protects you. A life insurance policy on your credit card balance protects only the credit card company. Don't ever pay for that.
 
FederalRepublic said:
This protects you. A life insurance policy on your credit card balance protects only the credit card company. Don't ever pay for that.
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That's not true, FederalRepublic. If I have an estate worth one million dollars, the executor of my estate must pay off all legal debts before dispersing proceeds to heirs. You are assuming someone has no assets. In addition to that, if I have a spouse and two kids at home and die? Paying off my credit card balance protects my family.
 
I still have a hard time understanding why there are still so many people still carrying debt. A lot of people I know are debt free, but then we all had the same person teaching the course over the years. I don't know what my credit rating is because I don't borrow money. The problem is that people think it is normal. It shouldn't be. Selling your future plus interest is no way to be in control of your life.
 
MaggieD said:
That's not true, FederalRepublic. If I have an estate worth one million dollars, the executor of my estate must pay off all legal debts before dispersing proceeds to heirs. You are assuming someone has no assets. In addition to that, if I have a spouse and two kids at home and die? Paying off my credit card balance protects my family.
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But a life insurance policy is paid to the beneficiary directly. There is absolutely no reason to buy insurance on credit card debt unless you can't buy regular life insurance for some reason. If you have a million dollars in assets, why would you worry about buying insurance on $30,000 credit card debt any way?
 
Helix said:
no, they shouldn't be allowed to cancel it for existing customers. that's like paying into a pension for your whole life and then having it rolled into some worthless plan at the last minute.

of course, the deck isn't stacked in favor of consumers or workers.
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The policy is term insurance. Good for 1 year with no expectation of future benefits (unless they were orginallyspecified).
 
jimbo said:
The policy is term insurance. Good for 1 year with no expectation of future benefits (unless they were orginallyspecified).
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if she has paid in, they shouldn't be able to pull the carpet out from under her feet.
 
Helix said:
if she has paid in, they shouldn't be able to pull the carpet out from under her feet.
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She bought term insurance. Term covers a specific event, In this case her death with the CC company as the beneficiary, for a specific time, in this case a year, Unless there is a guaranteed renewal clause, the contract expired and Chase elected not to renew,
 
FederalRepublic said:
But a life insurance policy is paid to the beneficiary directly. There is absolutely no reason to buy insurance on credit card debt unless you can't buy regular life insurance for some reason. If you have a million dollars in assets, why would you worry about buying insurance on $30,000 credit card debt any way?
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I agree with you. Term life insurance is one-helluva-lot cheaper than that stuff. I'm completely agree. As to your last sentence, in this particular case -- my OP -- I actually think her KIDS engineered that whole deal for her -- and they're probably the very jakes who ran up the card.
 
jimbo said:
She bought term insurance. Term covers a specific event, In this case her death with the CC company as the beneficiary, for a specific time, in this case a year, Unless there is a guaranteed renewal clause, the contract expired and Chase elected not to renew,
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and this is how stricter regulation gains public support. sure, they might be able to do this legally, but pissing off your customer base is poor long term strategy.
 
Helix said:
and this is how stricter regulation gains public support. sure, they might be able to do this legally, but pissing off your customer base is poor long term strategy.
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Stricter regulation generally gains support because low information people expect something for nothing, and get pissed that their well laid plans got shot dewn.

Ask yourself if you would offer $38 K in life insurance to a person with an actuarial life expectancy of 1 year for $380.

Chase is ceasing the program because the liabilies outweigh the benefits. No other reason,

I question the math quoted in the story. Doing the math off the top of my head, she would have to have paid the $380 premium for around 50 years.to arrive at $16 K. Hardly likely. Even so, she had the benefit of term life for that 52 years.

If she had died the day after the origination day, her heirs would have made out big time. That is what insurance is all about.
 
MaggieD said:
Well, you're right about insuring their loss -- UNLESS you have that kind of money. Your estate must pay all bills after your death.

I must admit, though, one could have $2 million in assets and very easily structure them so there was no money available to pay any debt at all. Maybe her family should get busy with Plan B. :rofl
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That is not necessarily true in my state, but it is complicated and usually involves judicial intervention.
 
Fisher said:
That is not necessarily true in my state, but it is complicated and usually involves judicial intervention.
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That it requires judicial intervention simply means there's a way of cheating around it.
 
MaggieD said:
That it requires judicial intervention simply means there's a way of cheating around it.
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It doesn't always require it in my state. That the decedent owed somebody does not mean the person has to be paid, nor does it always require judicial intervention. Like I said, it can be complicated and nuanced and beyond my desire to explain in detail. I just wanted to point out that your statement is not always true everywhere. There are a lot of misconceptions about estates so people need to really look at their state laws closely before they start handing out checks or devises.
 
MaggieD said:
I agree with you. Term life insurance is one-helluva-lot cheaper than that stuff. I'm completely agree. As to your last sentence, in this particular case -- my OP -- I actually think her KIDS engineered that whole deal for her -- and they're probably the very jakes who ran up the card.
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That could be the case. Maybe they didn't want to wait for their inheritance.
 
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