Types of credit card insurance

If you have a credit card, chances are that you've been offered a type of credit card insurance.

Payment protection plans are pitched that they will make your credit card payments for you if you are hospitalized, lose your job or suffer a financial hardship. There are many different types of credit card insurance. Including:

1. Credit disability -- pays your minimum monthly if you become disabled.
   
2. Credit unemployment -- pays your minimum monthly if you are fired or laid off.
   
3. Credit life -- pays if you pass away.
4. Most people don't need a credit card insurance plan.

Most credit card companies will not let you use the credit card when the insurance is making the minimum payment for you. If the estate can't cover the bills, your bills will be charged off by the credit card company.