What is Credit Card Insurance?
Credit Card Insurance, sometimes known as balance protection insurance, pays out your outstanding balance (subject to any limits in the policy) or makes monthly payments on your behalf to your credit card issuer if your income is interrupted by unforeseen events.
What are the benefits of Credit Card Insurance?
Credit Card Insurance can reduce the burden of making payments to your credit card issuer and help protect your good credit rating, should your income be interrupted by unplanned circumstances such as job loss, disability, critical illness, or death.
What does Credit Card Insurance Cover?
The specific range of benefits provided by this insurance will vary with the financial institution that issued your credit card, but benefits generally include coverage for disability, critical illness, job loss and accidental death and/or dismemberment. There are also plans tailored for specific client segments (e.g. students and spouses of the primary insured cardholder). The benefit amount also varies by credit card, with some paying the minimum monthly payments on your credit card if you lose your job or are disabled, and paying out the entire credit card balance if you are diagnosed with a critical illness, are dismembered or die.