NCB launches credit card insurance
NATIONAL Commercial Bank (NCB) now offers insurance coverage on outstanding credit card balances up to a maximum of $2.5 million.
The new credit card insurance product, Creditor Life on Credit Cards, was launched by the banking giant yesterday. NCB said the insurance coverage is being underwritten by its insurance subsidiary, NCB Insurance Company.
"The average person rarely thinks about how their debts, including outstanding balances on their credit cards will be paid in the event of a critical illness, or worse, death. Additionally, few think about how family members left behind will be able to cope with the burden of meeting these obligations," NCB said in a press release.
"This insurance coverage ensures that the primary cardholder's dependents will be protected from having to pay off his/her outstanding credit card balances in case the worst happens."
According to NCB, a key feature of the product is that no underwriting is required and the client does not need to provide any proof of insurability or any declaration of health. Coverage is subject to specific limitations and exclusions, including age restrictions, which clients can discuss with their branch representatives, the financial institution said.
Cardholders can choose from two plans. With the "Life Only Plan", in the event of death, the outstanding credit card balance will be paid subject to the maximum limit of $2.5 million. With "Life and Critical Illness Plan", in the event of death or diagnosis of one of the covered critical illnesses (heart attack, cancer or stroke) the outstanding credit card balance will be paid subject to the maximum limit of $2.5 million, the company said.