Are all credit cards and loans insured in Canada or US so that when I die it is payed off .?

Question

I was told last year that my loans and credit cards will be payed off automatically when I die. I was concerned that collection agencies and banks would suck and drain my family when I am dead and have no more blood left for them to suck. I would appreciate people confirming that it is payed off when I die.

Answer 1

The standard credit card balance is NOT insured. As mentioned you need to purchase insurance.

If you pass away, the credit card company can and will go after your estate. Your heirs will receive anything left over after all of your creditors are paid (assuming there is any money left). They will not owe anything unless they co-signed a loan or for a credit card.

The advice already given is valid: check with your credit card company to determine if you have purchased this insurance (I doubt it's automatic, but who knows?). If they say yes, look or ask for a written proof if you do not have one already.

Answer 2

The primary insurance coverages linked to the "mass" majority of American credit cards DO NOT include "payment in full" benefit provisions when you die.

You can, if you like, purchase "Accidental Death & Dismemberment" insurance from the credit card company to "leave a legacy" for your family and as part of your overall "estate planning".

However, it will ALWAYS be cheaper to purchase the same Accidental Death & Dismemberment Insurance DIRECTLY from the insurance company of your choice. And you can ask for coverages similar to what the credit card companies are going to provide you.

The reason the insurance at the credit card companies is more expensive is because of their internal costs of processing your transaction, which they STILL SUBMIT TO AN INSURANCE COMPANY for review and approval.

Why pay the credit card company EXTRA money for something that you can do your damn self? That is UNAMERICAN.

Please NOTE: If the credit cards in question are not paid before you die, then the creditors can present claims against your estate as established in your trust, your will, your codicil, and in cases where you don't have a will, in PROBATE COURT.

Good luck!

10 pts please. :-).

Note: If you don't attach your family member's names to any of the debts and/or credit cards, then you have a better chance of ensuring that the credit card companies do not pursue/harass them after your demise.

Answer 3

You have to pay extra for that insurance. Usually you pay a percentage of your monthly balance for this type of insurance. Check for sure with the bank or credit card company.

Answer 4

Keep the families' names off the cards and they can't be dunned. What are your intentions, anyway? Don't do anything rash!