Credit Card Insurance: Protect Your Family from Debt After Death
Personal Finance
M
Moneycontrol•19-01-2026, 14:13
Credit Card Insurance: Protect Your Family from Debt After Death
- •Credit card outstanding cover is an add-on insurance that clears unpaid card dues if the cardholder passes away, preventing debt burden on family.
- •It typically covers the outstanding balance up to the credit limit, ensuring debt does not transfer to the estate or family members.
- •Enrollment is often straightforward with minimal or no medical underwriting, making it accessible even for those with health conditions.
- •Banks like Axis Bank and HDFC Bank offer such coverage; for example, Axis Bank provides life insurance at Rs 560 per year for Rs 1 lakh coverage.
- •Experts recommend viewing this as an 'add-on' to a comprehensive life insurance plan, not a primary source of income protection.
Why It Matters: Credit card outstanding cover protects families from debt by clearing dues upon the cardholder's death.
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