Credit card insurance is really a specialized form of one or more of the following types of insurance: disability insurance, life insurance or health insurance. What credit card insurance promises is to pay the balance or the minimum payment (one or the other) on your credit card in the event that you cannot. The credit card insurer then specifies the conditions under which it will pay. These conditions will likely be in the case of illness, death, loss of job or disability.
Credit card insurance is generally a consumer rip-off. For the dollar amount of the benefit versus the dollar amount of the premium it is one of the most expensive insurances you can buy, dollar for dollar. On the other hand credit card insurance is often offered by your credit card company and is usually pretty easy to get if you have a reasonable credit history.
If you are risk averse (in other words, don't like to leave anything to chance) credit card insurance may be a product for you. However, remember that it's another insurance company to deal with, and paperwork to provide if you are ever going to collect on it. Further, be sure that the company offering credit card insurance is reputable - and that they deal with claimants fairly and promptly.
