BankOne is in the game of aggresively marketing its credit card insurance program. Like CitiBank, which sent me a $15 check to lure me into its Credit Protector program back in May, BankOne is now giving me a $20 one for its variation called First Protect. You can clearly feel a credit card war is heating up: I remember one year ago, the typical check amount is only $2.50 or $5.00.
The First Protect program is very close to Citi's Credit Protector program, both providing short-term relief in the events of job loss, disability, hospitalization, accidental death or other life events. First Protect is charging 79 cents for every $100 of average daily balance -- this is a bit different from Citi's Credit Protector, in which charge is based on the balance at the statement day.
If you recall, I have four credit card accounts with BankOne/FirstUSA. It happens that the $20 check is targeting one of my most infrequently used account. So I'll happily cash out this unexpected gift. I will still cancel within the first 30 days -- who knows there will not be another $100 or $150 worth of free lunch?