Credit Card Life Insurance: A Shield for Families Against Debt After Death or Accident
Personal Finance
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News18•23-01-2026, 17:07
Credit Card Life Insurance: A Shield for Families Against Debt After Death or Accident
- •Credit Card Outstanding Cover or Credit Card Life Insurance protects families from debt burden if the cardholder dies or faces an accident.
- •This insurance pays off the outstanding credit card balance directly to the bank, preventing recovery calls and legal notices for the family.
- •The cover amount is typically equal to the card's limit or the outstanding balance at the time of death, and it usually doesn't require extensive medical examinations.
- •Banks like Axis Bank and HDFC Bank offer such covers; for example, Axis Bank offers ₹1 lakh cover for ₹560 annually, and HDFC Infinia includes up to ₹9 lakh cover in its annual fee.
- •While beneficial for debt protection, experts advise combining it with comprehensive term life insurance for complete financial security.
Why It Matters: Credit card life insurance offers crucial financial protection, settling outstanding debts after a cardholder's death or accident.
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