A Piece Of Advice

[Pete Incaviglia]

I'm not sure how many have ever thought of this, but you should: Buy loss of employment insurance on your loans and credit cards.

I purchased some on my auto loan from my bank. It's a few bucks a month, but it may well be worth it if I'm laid off. That means my $240/month payment will be paid if I'm laid off.

You can't get it on a mortgage — at least I couldn't find anyone that offered it. BUT, if you've got your mortgage down low enough, you can sometimes refinance it into a personal loan and then buy the loss of employment insurance on the personal loan.

That's how bad this business has become. I was thinking ahead in July 2008 when I bought my new car and purchased the insurance way back then. It may come in handy soon.

PS - I know this isn't a journalism topic, but it's sort of work related. Moddies move it if you must.

 

[Ace]

Pete,

I don't know how I feel about that. If the places are pushing them, I gotta think it benefits them. The credit card company practically cried when I told them I didn't want it.

I have to think they take a pretty hard line on paying off.

 

[Johnny Dangerously]

A hard line? On insurance?

 

[Stitch]

How much is that insurance and how many months does it cover? I've always heard that type of insurance is a bit of a joke to buy, sort of like the extended warranties that Wal-Mart and Best Buy push.

 

[RickStain]

You'd generally be better off paying the extra on the loan itself or putting it into emergency savings.

 

[Pete Incaviglia]

You'd generally be better off paying the extra on the loan itself or putting it into emergency savings.

Normally, I'd agree. But I saw this writing on the wall, and I'm sure many other newspaper people probably do, too.

But I've only paid the extra 18 bucks for seven months — $126 total.

Also, I have it through the bank, at which my wife works. She nor her coworkers would have sold it to us if it wasn't easy to access if I lost my job.

As for the credit card company crying when you said no. First, you still have to remember that the odds are in their favor. More than 90 of 100 people are still working, so the odds of actually needing it or using it are still slim in general — maybe not if you're a reporter. And second, I'm sure the credit card company will take a hard line stance on picking up your payments. Probably harder than your bank would.

 

[Johnny Dangerously]

I just hope there's not some loophole so slickly concealed that even your wife and her co-workers don't know about it. I really do. As many times as I've been burned by credit cards and banks and insurance companies, I'm beyond skeptical, but I really hope you'll get what you paid for.

Actually, I hope you never have to find out.

 

[Pete Incaviglia]

I just hope there's not some loophole so slickly concealed that even your wife and her co-workers don't know about it. I really do. As many times as I've been burned by credit cards and banks and insurance companies, I'm beyond skeptical, but I really hope you'll get what you paid for.

Actually, I hope you never have to find out.

Haha. I agree. My wife is looking into it Monday just to be prepared.

I remember my dad telling me about the recession in the early 80s. He worked at an auto factory. A **** ton of guys lost their jobs but there were some who had the insurance and had their boat, two cars and other things being paid for.

 

[Johnny Dangerously]

I'm glad she's looking into it. If you only knew -- and maybe you do -- how many people got dicked by Allstate and State Farm and others after Katrina and Rita. The extra coverage they bought before the hurricanes, to make sure "you'll be made whole if the worst happens," didn't help a lick. So, I just have a hard time believing in anything anymore.

Good luck, and here's to never needing it.

 

[micke77]

Pete....man, I'd check the "fine print" and everything else before doing something like that...just the mere words of "credit" and "card" can get scary and i'm doing my best to pay what i've got off in the next several months...my fault i put stuff on 'em at times, so it's up to me to get rid of as much of this debt as i can.
Johnny Dangerously mentioned the post-Katrina fiasco with insurance companies. hey, being a Bayou State resident, trust me, there are bad folks out there in that business. and being from louisiana, i'm probably a lot more leery and mistrustful on dealing with those in that profession.
just tread very cautiously.

 

[pallister]

"Paid off if I'm laid off" needs to find its way into a song.

 

[imjustagirl]

"Paid off if I'm laid off" needs to find its way into a song.

Get on it.

 

[Some Guy]

It's probably like all insurance. An utter waste of money unless you need it.

 

[Mark2010]

Yeah, I have always been jaded about any kind of insurance. it's like you are paying for something you hope you never use.

I wonder how much and for how long this insurance pays off. Let's say I have a new $15,000 car I bought last month and I lose my job next week. I've paid $126 in extra insurance premiums. Is it really going to pay off the whole bleeping car note?

It might be a good deal for some, but I'd have to read the fine print carefully first.

 

[Pete Incaviglia]

Let's say I have a new $15,000 car I bought last month and I lose my job next week. I've paid $126 in extra insurance premiums. Is it really going to pay off the whole bleeping car note?

No. Ours pays eight months. If I can't find a job in eight months — in any form — I'd be surprised.

 

[Stitch]

The StarTribune ran an article about credit insurance.

http://www.startribune.com/business/40689452.html?elr=KArksUUUU

Gist of the article is to read the fine print.

 

[Charlie Brown]

With a fine-tooth comb. I suspect there's so many ways they can nullify the agreement: your balance gets to be too high, your balance gets to be too low, you're late making a payment, you charge too much in a certain time span, you fail to meet other conditions you'd never think to consider, etc.

Be very careful.

 

[txsportsscribe]

If I can't find a job in eight months — in any form — I'd be surprised.

i hate to say this but i'm betting there are plenty of people on this site who are probably past surprised about their own situation.

 

[Pete Incaviglia]

Double-checked the coverage Monday. Alone and then with the personal banker who sold it to us. By all accounts, we're good. The lady even had two claims approved Friday of last week. And, of course, one denied. But I feel pretty good.