Credit shield is an optional insurance program or facility for credit cards offered by financial institutions where, in unforeseen and unfortunate circumstances, cardholders’ dues are taken care of. It is imperative for credit card users to know and understand credit shield options offered by their respective banks. Generally this valuable protection covers:

  • Outstanding amount on your credit card in the event of death, permanent total disability and/or critical ailments.
  • Assistance in paying outstanding dues by offering a minimum installment program in case of involuntary employment loss and/or temporary disability.

However, not all credit shield programs offer the same benefits; here is a look at the different options available forĀ credit cards from major UAE banks:

Bank: HSBC
Insurance Provider: MetLife Alico
Cost: 0.60% of monthly outstanding credit balance
Cover: In the event of death or permanent total disability, waiver of the outstanding balance up to a maximum of AED 200,000.
Additional payment of up to AED 55,000 directly to the cardholder or beneficiaries in the event of death, permanent total disability or critical illness of the primary cardholder.
In the event of Involuntary Loss of Employment or Temporary Total Disability, 10% of your monthly outstanding balance for up to 6 months.

 

Bank: Citibank
Insurance Provider: MetLife Alico
Cost: 0.79% of monthly outstanding credit balance
Cover: In the event of death, permanent and total disability or critical illness, waiver of the outstanding balance up to a maximum of AED 350,000.
In the event of Involuntary Loss of Employment or Temporary Total Disability, minimum due payments up to a maximum monthly payment of AED 2,750 for 6 months.

 

Bank: Emirates NBD
Insurance Provider: National General Insurance
Cost: 0.80% of monthly outstanding credit balance
Cover: In the event of death or permanent total disability, waiver of the outstanding balance up to a maximum of AED 100,000.

 

Bank: RAKBANK
Insurance Provider: Union Insurance Co.
Cost: 0.85% of monthly outstanding credit balance
Cover: In the event of death, permanent total disability or critical illness, waiver of the outstanding balance up to a maximum of AED 100,000.
In the event of Involuntary Loss of Employment, 10% of the outstanding balance, subject to a maximum of AED 4,000 for every month of unemployment, up to a maximum of 12 months.

A common practice among banks is to automatically enroll credit card holders in the credit shield program; so be sure to watch out for this when you sign up for a new credit card.

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Being Smart with Your Credit Card

A Foolproof Way to Protect Against Credit Card Fraud

Tackling Your Credit Card Debt