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    When you have the right credit card, you experience a world of benefits—rewards, cashback, deals and discounts at thousands of outlets, travel-related benefits, and more. Every time you swipe your card for your transaction, you get value for your money. This is why credit cards have been so popular among consumers in Malaysia.

    However, your credit card can also put in a pickle.

    Let’s say you lost your wallet and someone has spent thousands of Ringgits on your credit card. Or you’re unable to clear your outstanding balance because of a critical illness.

    To combat these issues, most major banks in Malaysia are offering solutions like protection plans like credit card debt insurance.

    First, let’s dive into credit card debt insurance and why you should invest in this plan.

    Getting Your Card’s Balance Insured

    An unmanageable outstanding balance on your credit card is stressful, especially if you’re critically ill or permanently disabled. And in the event of your death, your family may be responsible for clearing these dues. Leaving a debt like this behind is the last thing you would want.

    That’s why major banks in Malaysia offer an insurance on your credit card’s debt. This policy will help clear those dues as long as it doesn’t exceed the coverage amount. This plan comes with a monthly premium.

    Is it worth the additional expenses? Yes. For starters, it doesn’t cost a lot and will protect your assets. It will also ensure your family isn’t burdened because of unexpected events.

    Now, let’s check out some of the top card debt insurance plans in Malaysia.

    BBazaar's Best Credit Card Protection Schemes in Malaysia 2018

    Updated on 26th November 2018


    Credit Card Protection Schemes Benefits
    Citi Credit Shield Select

    In the event of your death, this plan will settle 100% of your outstanding balance.

    It will also pay your nominee an amount that is equal to the sum of the previous 3 months’ statement balance

    The same goes for critical illness. For settling and payment, the maximum amount available is RM300,000 per insured card member.

    Maybank Credit Card Plus Plan

    Up to RM100,000 per life is eligible for protection with this plan in the event of an unexpected tragedy.

    This is applicable if you experience death or experience total permanent disability. This amount is cleared in one entire lump sum to the bank.

    UOB Credit Shield Plus

    In the event of death, total permanent disability, or diagnosis of any one of the 36 critical illnesses, this plan will clear dues up to RM300,000.

    CIMB Credit Protector Plus

    With the CIMB Credit Protector Plus plan, you get a coverage of up to RM150,000 for your credit card dues. The duration of this plan is 1 month and it gets renewed on a monthly basis.

    Citi Credit Shield Select

    This plan offers insurance protection on your outstanding balance in the event of death, critical illness, or hospitalisation. You can renew this plan yearly as well. One of the highlights of this card is that you don’t need to undergo any kind of medical examination. You do have to meet the health declaration criteria to be eligible for the Citi Credit Shield Select, though.

    Benefits

    In the event of your death, this plan will settle 100% of your outstanding balance. It will also pay your nominee an amount that is equal to the sum of the previous 3 months’ statement balance. The same goes for critical illness. For settling and payment, the maximum amount available is RM300,000 per insured card member.

    In case you have been hospitalised, this plan will settle your outstanding balance. However, you can only claim this once a year and it’s subject to a maximum amount of RM30,000.

    Cost and Eligibility

    • You will have to pay RM0.60 for every RM100 of your statement balance mentioned in your monthly statement.
    • You won’t be charged a premium for the first 30 days of the plan.
    • You have to be a minimum of 21 years and a maximum of 59 years to apply for this plan.

    Keep in Mind

    • If your card’s issuance is less than 3 months before your death or illness, 300% of outstanding balance will be cleared.
    • Any new charges incurred after your death, diagnosis of critical illness, or after your first day of hospitalisation won’t be payable.

    Maybank Credit Card Plus Plan

    This plan will insure the outstanding balance on your credit card in the event of death, total or permanent disability, or if diagnosed with any one of the 36 covered critical illness.

    Benefits

    Up to RM100,000 per life is eligible for protection with this plan in the event of an unexpected tragedy. This is applicable if you experience death or experience total permanent disability. This amount is cleared in one entire lump sum to the bank.

    Cost and Eligibility

    • You will have to pay RM0.65 for every RM100 of your outstanding credit card closing balance. And if your closing balance is zero, you won’t be charged this fee.
    • You have to be a principal Maybank and American Express Credit Card Member.
    • You have to within 21 years to 60 years of age.

    Keep in Mind

    • You will not be eligible for this cover if the death is due to suicide within 12 months from the policy start date.
    • The same applies for any pre-existing conditions like illness or ailments that existed during the 12 months before the coverage date.
    • There are several other exclusions as well—total permanent disability because of war, drug and/or alcohol abuse, self-inflicted injuries, and dangerous hobbies, among others.

    UOB Credit Shield Plus

    When you experience unforeseen circumstances, this plan will clear the dues on your credit card. This way, you don’t have to worry about the burden of debt or expect your family to manage it.

    Benefits

    In the event of death, total permanent disability, or diagnosis of any one of the 36 critical illnesses, this plan will clear dues up to RM300,000.

    However, this depends on the type of credit card you have from UOB. Below is a table that explains the maximum limit for each card if the insured member has died or experienced total permanent disability:

    Card Name Maximum Limit
    Single Classic or Gold credit card RM50,000
    Multiple Classic and/or Gold credit cards RM100,000
    Single Platinum credit card RM300,000
    Multiple Platinum credit cards RM300,000
    Single Platinum credit card and Classic and/or Gold credit card RM300,000

     

    This plan also covers temporary total disability and clears 5% of the outstanding amount. There will be up to 20 monthly payments per lifetime. Check out the table below to understand the maximum limit for each UOB credit card.

    Card Name Maximum Per Payment Maximum Per Policy Year
    Single Classic or Gold credit card RM5,000 RM50,000
    Multiple Classic and/or Gold credit cards RM5,000 RM50,000
    Single Platinum credit card RM15,000 RM150,000
    Multiple Platinum credit cards RM15,000 RM150,000
    Single Platinum credit card and Classic and/or Gold credit card RM15,000 RM150,000

     

    Cost

    • You will have to pay RM0.65 for every RM100 of your outstanding balance as a premium.
    • The coverage for the first 30 days is free, once your application is approved.

    Keep in Mind

    • Get in touch with UOB’s 24-hour call centre for additional information about this plan.
    1. CIMB Credit Protector Plus

    To ensure you have peace of mind in the event of a tragedy, this plan insures the outstanding balance on your credit card. The coverage is for three types of events—death, total and permanent disability, and diagnosis of 36 critical illnesses.

    Benefits

    With the CIMB Credit Protector Plus plan, you get a coverage of up to RM150,000 for your credit card dues. The duration of this plan is 1 month and it gets renewed on a monthly basis.

    The critical illnesses under this plan include:

    • Alzheimer's Disease/Severe Dementia
    • Bacterial Meningitis
    • Benign Brain Tumor
    • Brain Surgery
    • Cancer
    • Cardiomyopathy
    • Chronic Aplastic Anemia
    • Coma
    • Coronary Artery ByPass Surgery
    • Deafness – Permanent
    • Irreversible
    • Encephalitis
    • End-Stage Liver Failure
    • End-Stage Lung Disease
    • Full-Blown AIDS
    • Fulminant Viral Hepatitis
    • Heart Attack
    • Heart Valve Surgery
    • HIV Infection due to Blood Transfusion
    • Kidney Failure
    • Loss of Independent Existence
    • Loss of Speech
    • Major Head Trauma
    • Major Organ/Bone Marrow Transplant
    • Medullary Cystic Disease
    • Motor Neuron Disease
    • Multiple Sclerosis
    • Muscular Dystrophy
    • Occupationally Acquired Human
    • Immunodeficiency Virus (HIV)
    • Infection
    • Parkinson's Disease
    • Primary Pulmonary Arterial
    • Hypertension
    • Serious Coronary Artery Disease
    • Stroke
    • Surgery to Aorta
    • Systemic Lupus Erythematosus with Severe Kidney Complications
    • Terminal Illness
    • Third Degree Burns

    Cost and Eligibility

    • You will have to pay RM0.60 for every RM100 of your outstanding balance.
    • You have to be a minimum of 18 years and a maximum of 60 years to be eligible for this plan.
    • You have to meet the health declaration criteria to be eligible for the plan as well.
    • You can renew this policy till you’re up to 65 years old.

    Keep in Mind

    • There are certain exclusions that are not covered by the plan. Read the fine print for more clarity.
    • The major exclusions include suicide within 12 months from the certificate commencement date, pre-existing conditions certificate commencement date, self-inflicted injuries, misuse of drugs and/or alcohol, and more.
    • You will have to pay 10% of the premium payable as commission.

    Conclusion

    Investing in a credit card debt insurance plan will save you in the long run. For starters, it’s not that expensive and you can determine the amount you pay. If your outstanding balances are low, your premium for these plans will be inexpensive too.

    In the event of tragedy, you won’t have to stress about clearing these dues because your insurance covers the amount. And if the insured member has passed away, the family won’t have to worry about paying off the debts either.

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