Tuesday, November 22, 2011

Credit Protector, Balance Protector, Payment Protector, Credit Shield, Account Balance Protection, and many many more aliases for an apparently corrupt credit card insurance plan.

The two overlapping images below list over 20 different names for  Consumer Credit Card Protection Insurance that is not overseen by any insurance agency or commission.  
The bottom line is, the ratio of premiums to policy holder claims actually paid out by unregulated insurance policies can be as low as 1%, meaning for every 100 dollars collected, only one dollar gets paid back to policy holders. 
While specific sections of credit card insurance coverage payout ratios may be as low as 1%, the overall average is higher, but well below insurance policies that ARE regulated by insurance regulators.

As a general rule, Credit Protector credit card insurance and it's gang of aliases won't ever reach the ratio of premiums to payouts that true insurance companies beholden to insurance guidelines pay out to their policy holders. This is what is truly wrong with the various credit card insurance protection programs that are offered apparently all over the world.

I'm estimating that most of the versions of credit protector credit card insurance programs are charging anywhere from 3 times to 9 times more than what they should were they actually regulated by insurance companies. If these credit protection service programs were ever sued for charging too much money for the past 10 to 15 years, the settlement payout world wide in my opinion would probably be over 100 billion dollars....and rising. 


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