MBNA Lifestyle Protection - Too good to be true?

Themadcow

In May this year I paid for a car on my Egg Credit Card (approx £7400) and immediately switched the balance to an MBNA card at 0% interest for 12m. At the time of activating my card I mentioned to the sales advisor at MBNA that I was about to move house - she immediately suggested taking Lifestyle Protection Insurance at the cost of £65 per month, stating that the insurance would cover 5% of my total loan for 3 months following the move of house (approx £370 per month) and then I could cancel it with 30 days notice following the last of the three payments.

Now, this seemed a little too good to be true at the time - I mean, £200 approximate cost for £1100 of benefit? I questionned whether there was any catch and she said there wasn't... so I took it.

True to their word, for the last 2 months the insurance has been paying out 5% of my card balance. With 1 month to go before my final payment and my written cancellation, I am just wondering:

"What's the catch?"

Can anyone with experience explain where I might run into problems? It just all seems a little too good to be true...