Credit Card Insurance

What is Credit Card Insurance?

This is a group life insurance plan sold to NCB to cover the lives of credit cardholders who elect to enroll for coverage. Under the terms of the plan, the credit card balance will be paid by NCB Insurance Company Limited in the case of:

  • Death
  • Diagnosis of a critical illness, namely heart attack, cancer or stroke
  • Involuntary loss of job

This removes or reduces the obligation on the estate of the deceased cardholder (or the cardholder, in the case of diagnosis of a critical illness or involuntary loss of job) to pay the outstanding credit card balance on the date of the unfortunate event (subject to any applicable maximum).

 

What is Involuntary Loss of Job?

Involuntary Loss of Job refers to the unexpected termination of employment of the cardholder due to no fault of his/her own. It excludes termination under the following circumstances:

  • For cause (misconduct, criminal conviction, fraud)
  • Resignation
  • Retirement
  • Expiration of contract
  • Voluntary redundancy 

Does this insurance apply to credit cards denominated in USD?

Yes. Individual card holders with credit cards denominated in US dollars also qualify for coverage under this plan.

 

Is there a Pre-Existing conditions clause?

Yes. No critical illness benefit will be payable if the credit card holder suffers from a pre-existing condition. A pre-existing condition means:

  • The existence of symptoms which would have caused an ordinarily prudent person to seek diagnosis, care or treatment
  • A condition for which medical advice, care or treatment was sought or recommended

Where the said symptoms, condition or diagnosis occurs before one hundred and eighty (180) days following the enrollment date under the plan

 

How are the premiums calculated for insurance coverage?

The premium is calculated by multiplying the applicable plan rate to the balance at the last statement date.

  • Rate for Plan A: $0.31 per $100 of the statement balance
  • Rate for Plan B: $0.48 per $100 of the statement balance

For example, if the statement balance is $100,000 then the premium is $310 for plan A and $480 for plan B.

 

What will the cardholder receive as evidence of insurance coverage?

The cardholder will be mailed a Certificate of Insurance outlining the terms of the coverage.