An HSBC agent called me today and offered me the Cardholder Repayment Protector. I just asked the agent to explain it to me first before I avail of anything from them. And here is what I understand from the explanation.

Here is what they will take from me: For every 100 pesos unpaid on my credit card, I will be charged 45 centavos as the premium for the Protector. So, if I have an outstanding balance of 1000 pesos, they will charge me 4.50 pesos for it. There’s no premium if there’s no outstanding balance.

Here is what I will get from them: In the event of my death, my credit card repayment will be taken care of by them. My parents, relatives or anyone will not pay for my credit card debts, but them.

I asked the agent to call back at 1:00PM because I am still thinking of questions to ask before I avail of this. I actually planned to google it first. Googling reveals this page: the UK version of the plan which says:

Benefits of Cardholder Repayment Protector

• Your credit card repayments will be taken care of should you be unable to meet them due to accident, sickness, involuntary unemployment or death.
• You can take advantage of Cardholder Repayment Protector if you’re between 18 and 65, working at least 16 hours a week and resident in the UK.
• If you are unable to work for 15 days in a row, 10% of your outstanding balance will be repaid for up to 12 months or until you return to work, whichever is sooner, up to a maximum of £1,500 per month.
• In the event of your death, the outstanding balance will be repaid up to a maximum of £15,000, less any arrears.
• It costs just 79p per £100 of statement balance – and there’s no premium if there’s no outstanding balance.
• Back and stress-related illnesses are covered under this policy.
• Cardholder Repayment Protector is available with all HSBC Bank credit cards and is arranged through Aviva Insurance Limited.

When they call back, I’ll ask them if the same features apply here as well.

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