Credit Card Insurance | Balance Protection Insurance | Ratehub.ca (2024)

FAQs

What is credit card balance protection insurance? ›

If you become critically ill or die, balance insurance may pay off your balance in full or up to a maximum amount. Credit card balance insurance benefits apply to the amount you owed on your card at the date of loss. This means the date of death, unemployment, total disability, or your critical illness diagnosis.

It is intended to protect policyholders from the risk that they will be unable to cover their minimum monthly payments when specific circ*mstances arise. Credit card companies offer balance protection to cardholders for a fee and will cover monthly payments if the individual becomes disabled, unemployed, or dies.

The benefit of insuring your credit card balance is that if job loss, total disability, or loss of life occurs, your finances may be protected to a greater degree. Credit card balance protection insurance can help you make payments on your credit card if you, for example, lose your job.

Not only can it help you keep making your mortgage, auto or personal loan payment while experiencing a significant illness, loan protection insurance also protects your credit score while you go through these devastating experiences as well.

Can I cancel the insurance coverage? If you cancel within the first 30 days, the insurer will issue a full refund of any amount paid for the Plan to your credit card. If you cancel any time after that, the insurer will refund any amount paid for the period after the cancellation date.

If you have a large amount of debt that you're working to pay down, it may not be a bad idea to have credit card protection insurance. In case of emergency, it would allow you to suspend your credit card payments for a time and prioritize debt that can't be suspended.

Yes, you will need to pay a premium in case you opt for the credit card protection plan. Can I cancel the Card Protection Plan? Yes, the Card Protection Plan can be cancelled by calling the customer care of the bank. However, you must call the customer care from the registered mobile number.

Generally, yes. You should be able to cancel the credit protection feature on your loan. However, you should read your account agreement for cancellation information, including to learn if there are any requirements or penalties associated with cancelling this feature.

This approach adds up all the daily balances on your credit card statement for a month, divides the total by the number of days in the month and then multiplies this number by the premium (which is a percentage rate). The premium is usually 0.80-1.20% of the average daily balance.

There's usually no minimum spend required for a debit card or credit card purchase to be covered by chargeback, but there are time limits. You'll typically have 120 days from the date of the transaction to contact your bank to make a claim.

How to use credit card protection? ›

Here's how to claim: Write to the credit card company, stating what you bought, where and when you bought it and how much you paid. Include copies of receipts if you have them (if not, you'll need some other proof of purchase).

These insurance plans protect you from online scams and fraud. Credit card insurance plans can cover any medical expenses, which are known to be expensive most of the time. A credit card purchase protection plan saves your financial investment if you damage or lose what you have purchased.

If you're unlikely to be able to make your existing debt repayments if you find yourself out of work, you may want to consider PPI. However, if you have savings or cover from another product already, for instance critical illness cover or loan protection insurance, it may be unnecessary.

Typically, the cost is calculated as a percentage of the monthly loan payment, ranging from 1% to 5%. As a result, the larger the loan balance is, the more it costs to insure it.

30-day review period:

If you cancel your coverage during this 30-day review period, you will receive a full refund of any premiums paid. You can also cancel this insurance at any time by providing written or verbal notice to Canadian Premier. Contact information for Canadian Premier is listed below.

Payment protection plans are offered by some credit card issuers and other lenders to their customers. The plans promise to let borrowers stop their payments for a period of time if they become unemployed or disabled and/or to cancel any remaining balances if the borrower dies.

CPP helps protect your cards against the risk of loss, fraud, and damages. Card protection plans also offer other useful features. This includes blocking your card with a phone call, emergency travel assistance, and more.

Creditor insurance (also called credit protection) is optional coverage you can buy to help cover your RBC debt balances in case of death, disability, critical illness or job loss (Job Loss coverage is available on eligible RBC credit cards only.