New Uses of Assets: Credit
Credit is particularly useful in the new world that exists after a diagnosis because of the following reasons:
- Credit can help you deal with an immediate extraordinary expense - including uninsured medical expenses.
- Credit can be helpful in case you have to stop working and your disability income doesn't start for a time.
- Credit card bonuses can provide free travel, gifts, and discounts. Some cards even give a cash rebate.
- Credit can be used to increase the size of your estate. Credit life insurance is issued without health questions. The extra money increases the size of your estate by paying off debts that would otherwise have to be paid from the assets of your estate.
- Credit disability insurance can help keep your bills current and relieve the financial strain if you become disabled and unable to work.
- Credit can be used creatively. The Wall Street Journal reported about a man who was at the end of his life. He wrote a check on his credit card for the downpayment of an expensive new car. Through the finance company, he then obtained credit life insurance on the remaining debt. When he died, his wife got his car free and clear of any debt because the credit life insurance he had on his credit card paid off the credit card debt. The credit life insurance obtained through the finance company paid off the rest of the debt. NOTE: Likely as a result of the publicity surrounding this story, many credit cards do NOT provide life insurance for debt resulting from cash charges and it is difficult to find credit insurance for big ticket items with no medical questions asked.
To learn about new uses of assets other than credit, click here.
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