Credit Shield for Credit cards
A Credit shield is an insurance cover for your credit card. One can’t predict what life has in store. Credit shield provides protection if any unforeseen events take place like death or permanent inabilities. Under such circumstances, this cover pays off your credit card bills by not troubling your near and dear ones. There are several banks in UAE which provide this cover on their credit cards. Every month, the credit card holder will be paying some amount in addition to the monthly payments.
Factors covered by Credit Shield
Credit shield Insurance covers various factors like
Accident: In case the cardholder gets injured seriously in some incident whereby the cardholder is rendered disabled causing them to be unable to make payments on time. Any deliberate and self-inflicted injuries are not covered i.e suicide.
Permanent major disabilities: If any injury or illness like loss of eyesight, paralysis, legs amputation etc making the cardholder dependent on someone and unable to take care of himself.
Temporary disabilities: It is similar to permanent disabilities where the disorders are caused by accident or some illness like comatose. But this definition varies from bank to bank. Some banks don’t cover temporary disabilities under credit shield.
Loss of employment: This is when the credit card holder loses his/her job involuntarily. E.g. in case of the company shut down. The loss of employment must come at no fault on the employee side. Then the credit card company will pay the outstanding balance. But it varies with different banks.
Death: If the card holder passes away due to some natural reasons like heart attack, cerebral attack, cardiac arrest etc then the bank will clear the outstanding balance.
Eligibility for Credit Shield Insurance
- Should have a credit card
- Should be a primary/secondary credit card holder
- Must have paid the balance on time and maintaining a good credit score
- Minimum age is 18 years, maximum age 60 years
- Minimum salary AED 5000
Documentation for Credit Shield
- Death certificate(in the case of death)
- Genuine Medical certificate(in the case of temporary or permanent disabilities)
- Termination letter(in the case of loss of employment)
Banks providing Credit Shield and Charges:
Banks charge a fee for providing credit shield insurance service on the credit cards. It will be added to the monthly interest and would be beneficial during unplanned circumstances as discussed above.
Arab Bank: Arab bank provides credit insurance service to its credit cardholders and 0.50% is added along with the interest every month.
For more details on Arab Bank Credit Card click here
Citi: Citi Credit Card comes with credit insurance for 0.79% of your bill per month in addition to the monthly payment.
For more details on Citi Credit Card click here
Standard Chartered Bank: Standard Chartered Credit Card charges 0.89% for credit shield.
For more details on Standard Chartered Credit Card click here
HSBC: HSBC Credit Card charges 0.60% for credit shield.
For more details on HSBC Credit Card click here
Emirates Islamic Bank: Emirates Islamic Credit Card charges 0.75% for a credit shield.
For more details on Emirates Islamic Credit Card click here
Mashreq Bank: Mashreq Credit Card charges 0.89% for a credit shield.
For more details on Mashreq Credit Card click here