Is your Credit Card Protected?

Do you have a credit card?  The average employed Jamaican has some form of credit and often relies on the fact that they can afford to pay any fees or debt that they incur using the card.

However, rarely is any thought given to how loved ones would cope if they were suddenly faced with the loss of the card holders’ income. Death and illness often gives no warning and this leaves others to face debt that they are unable to pay.

So how can consumers protect themselves?

Well, what about insurance?

Often insurance for credit cards covers theft and removal of the debt of the cardholder on his death.

Effective January 2, 2014, The National Commercial Bank offers its customers insurance on their credit cards.
“Clients can enroll for Creditor Life on Credit Cards, which will pay off outstanding balances on personal credit cards in case of their death or diagnosis of heart attack, stroke or cancer,” the bank said in a release.

Is it a good deal?

Well the best feature, in my opinion is that customers do not have to provide any declaration of good health.

There are a few criteria in order to qualify such as specific age requirements

This is not the only bank to offer such services. However N.C.B. has launched a $2.5 million dollars insurance plan for its credit card holders. They offer their customers two plans.

The first plan is the life-only plan which is in event of death will pay the outstanding credit card balance subject to the maximum limit of of $2.5 million.

The second plan covers not only death but severe illnesses with the same coverage amount as the first plan.

So do you need credit card insurance?

If you already have substantial life and disability insurance policies, it may be possible that you will have enough coverage in those policies to cover your credit accounts due to your death or disability.

Click here to read the full article in The Gleaner.

http://jamaica-gleaner.com/gleaner/20140103/business/business3.html

Will you be buying credit card insurance?

Let me hear from you!

Teri Ann Renee Paisley

Gleaner Online Writer

Tags: credit card, debt, Insurance