NCB launches J$2.5m credit card insurance
Published:Friday | January 3, 2014 | 12:00 AM
National Commercial Bank Jamaica Limited (NCBJ) announced yesterday that it has launched a new credit card insurance product in collaboration with NCB Insurance Company (NCBIC).
The bank said it is offering insurance coverage on outstanding credit-card balances up to a maximum of J$2.5 million through the product called Creditor Life on Credit Cards.
NCB noted that "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 ... death."
In addition, it said, few persons think about how family members left behind will be able to cope with the burden of meeting those obligations.
It is in that regard that NCB said it has launched the insurance, effective yesterday, January 2.
"Clients can enroll for Creditor Life on Credit Cards, which will pay off outstanding balances on personal credit cards in case of their death or diagnosis of heart attack, stroke or cancer," the bank said in a 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," it added.
A key feature of the insurance is that no underwriting is required and clients do not need to provide any proof of insurability nor any declaration of health. Coverage is subject to specific limitations and exclusions, including age restrictions, which clients can discuss with their branch representatives, it said.
Cardholders can opt for either of two plans. On a 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.
In the event of death or diagnosis of critical illnesses, including heart attack, cancer and stroke, the outstanding credit-card balance will be paid subject to the maximum limit of $2.5 million.
The bank said the Creditor Life on Credit Cards insurance coverage is underwritten by NCB Insurance Company.