An individual cannot predict their emergency expenditure, no matter how hard they try. A credit card can be a key financial tool if it is used sensibly. It gives you the freedom to purchase all that is within the credit limit and you can pay the amount, later. Not only is it convenient, but it’s also a handy way to keep a record of your purchases.
With the ease of having access to credit anytime, many individuals are largely dependent on credit cards for their day-to-day purchases. However, the greatest concern of every cardholder is not being able to repay the credit card dues due to loss of income, disability, or any other genuine reason. This could not only put a severe financial strain on you and your loved ones but could also negatively impact your credit score.
Is there a way to protect the cardholder from such a situation?
Yes, you can, if you have Credit Card Protection Insurance. A Credit Card Protection Plan could be your saving grace.
What is a Credit Card Protection?
Credit card protection insurance is a form of protection offered by many card issuers to help you in times of financial difficulty to protect yourself and your loved ones if unforeseen event occurs, the outstanding balance on your credit card is covered.
Credit card protection covers debt on your credit card in the event of:
- Loss of employment
In the event of loss of employment: The minimum monthly repayment of the amount owing on your credit card will be paid for a certain period. - Disability
In the event of death, critical illness, and disability: The outstanding balance on your credit card will be settled up to a maximum amount, which may differ between financial service providers. - Critical illness
In the event of death, critical illness, and disability: The outstanding balance on your credit card will be settled up to a maximum amount, which may differ between financial service providers. - Death (including accidental death)
In the event of death, critical illness, and disability: The outstanding balance on your credit card will be settled up to a maximum amount, which may differ between financial service providers.
It is separate from other protections that may automatically come with a credit card.
A credit cardholder has to apply for it and the cost will depend on how much they spend on their credit card each billing cycle.
What are the risks of not having Credit Card Protection?
Without Credit Card Insurance in place, you may face the possibility of the following risks:
- You will still be required to make your monthly repayments even if you are disabled or lose your employment.
- Should you pass away, your family may inherit your debt and have to find a means to settle it on your behalf.
- You could incur a negative credit score, which may impact your future ability to apply for credit.
A Credit Card Protection Plan provides you with the peace of mind that, regardless of an unfortunate event, any credit card debt you may have will be covered.
Visit our Credit Card Protection Plan page for more information, If you would like to understand more about insurance premiums or would like assistance with your insurance, reach out to our innovation team at innovations@deinon.ae , and we can take care of the rest.
