Credit cards can be a convenient way to pay for the things you want and need. But if you’re unable to work due to illness or injury, have you thought about how you’ll cover your repayments?
What is Credit Card Insurance?
Credit Card Insurance can help you cover your credit card repayments when injury, illness or involuntary unemployment means you can’t. And if the worst should happen and you pass away, Credit Card Insurance can pay off the balance of your credit card – so your loved ones won’t be left with your debt.
Who should consider it?
If you have a credit card, Credit Card Insurance is something to consider. Generally, this type of insurance is useful if you have a credit card and are concerned about paying the outstanding amount if you are unable to work and do not have the financial means or another form of insurance protection to cover your credit card repayments.
How it works
While Credit Card Insurance products may differ, most will ensure your credit card outstanding balance will be paid off if you are unable to work due to an illness or injury, diagnosed with cancer, have a stroke/heart attack or you become involuntarily unemployed through no fault of your own - up to the maximum limits of the policy.
How much cover can I get?
Credit Card Insurance will cover your outstanding balance on your credit card up to a maximum limit of usually $50,000. Therefore you don’t choose your amount of cover as it can vary from month to month based on your outstanding balance.
How do I pay for Credit Card Insurance?
Credit Card Insurance is usually paid monthly. The cost of your Credit Card Insurance will depend on the outstanding balance on your monthly statement. If you have no balance outstanding on your credit card then there will be no insurance premium for that month.
Using CardAssure (which is offered via our partner Citibank), the premium for this product is 69c per $100 of your outstanding balance on your monthly statement.