Credit Card Repayment Insurance

Credit card repayment insurance is an optional policy that you can activate to cover the monthly repayment of your card in the event that you’re unable to pay.

0% p.a. on balances transferred for 22 months, with a 2% balance transfer fee.
Annual fee refunded – a potential saving of $99 a year (conditions apply)
Earn 1 Rewards Point for every dollar you spend on eligible purchases and choose your own rewards.
Comes with Apple Pay.
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Credit Card Repayment Protection Insurance is a type of insurance that takes care of credit card repayments when you can’t make them as a result of circumstances beyond your control. Such circumstances include losing your job involuntarily or becoming unfit for work through illness or injury. Your credit card debt will also be covered in the event of your death, giving your family one less financial worry. This means that a credit card with repayment protection insurance can provide real of peace of mind.

Some business credit cards have complimentary repayment protection insurance as part of their travel insurance cover, while some personal credit cards offer it in return for a small monthly premium cost, usually a percentage of the closing balance of your credit card statement.

The credit cards listed on this page all offer repayment protection insurance, either as a complimentary benefit or as an optional extra you can pay for. It’s very important to read the terms and conditions of the policy before you decide whether the cover offered is suitable for your circumstances.

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HSBC Platinum Credit Card
APPLY BY 31 aug 17
13 reviews
0% p.a. on balances transferred for 22 months, with a 2% balance transfer fee.
Earn 1 Rewards Point per $1 spent.
Annual fee refunded – a potential saving of $99 a year (conditions apply)
More info
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No
19.99% p.a.
ongoing
$99
ongoing
0% p.a. for the first 16 months on balance transfers with a 2% balance transfer fee. Reverts to 21.74% p.a.
Low 12.49% p.a. ongoing rate on purchases.
Low annual fee of $58 p.a.
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Yes
12.49% p.a.
ongoing
$58
ongoing
NAB Low Rate Card
APPLY BY 01 oct 17
77 reviews
0% p.a. on balance transfers for 16 months.
Make purchases with NAB’s lowest interest rate card and longest interest-free period.
Low $59 p.a. annual fee.
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Yes
13.99% p.a.
ongoing
$59
ongoing
NAB Low Rate Platinum Card
APPLY BY 01 oct 17
0% p.a. on balance transfers for 16 months.
Platinum Concierge Service plus seven complimentary travel insurances.
Up to 55 days on purchases.
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Yes
13.99% p.a.
ongoing
$100
ongoing
No international transaction fees on purchases.
No currency conversion fees.
$0 p.a. annual fee.
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Yes
21.99% p.a.
ongoing
$0
ongoing
Citi Simplicity Card
APPLY BY 31 aug 17
No annual fee.
Enjoy 10% cash back on all eligible purchases capped at $50 per month for first 4 months from card approval.
0% p.a. for 6 months on balance transfers.
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Yes
19.99% p.a.
ongoing
$0
ongoing
Westpac Low Rate Credit Card
APPLY BY 26 oct 17
43 reviews
Choose between 0% p.a. for 18 months or $200 cashback. (Conditions Apply)
An annual fee of $59.
Up to 55 days on purchases
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Yes
13.49% p.a.
ongoing
$59
ongoing
0% p.a. for 12 months for balance transfers and a one-off credit plan establishment fee of 1%.
Start your holiday with a $200 Travel Credit every year.
Range of travel insurances including overseas medical emergency expenses, travel cancellation cover and more.
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Yes
20.74% p.a.
ongoing
$195
ongoing
St.George Vertigo Platinum Credit Card
APPLY BY 20 sep 17
6 reviews
0% p.a. for 20 months on balance transfers.
Complimentary insurance for overseas travel for 6 months.
Low ongoing purchase interest rate of 12.74% p.a.
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-
12.74% p.a.
ongoing
$99
ongoing
American Express David Jones Credit Card
APPLY BY 31 aug 17
18 reviews
Receive 40,000 points or 30,000 Qantas Points when you apply by 31st Aug 2017. (Conditions Apply).
Earn up to 3 points per $1 spent at major supermarkets and petrol stations, 2 points per $1 spent at David Jones, and 1 point per $1 spent elsewhere.
Flexibility to choose Qantas Frequent Flyer points or Membership Rewards points.
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Yes
20.74% p.a.
ongoing
$99
ongoing
American Express David Jones Platinum Credit Card
APPLY BY 31 aug 17
1 review
Receive 50,000 points or 37,500 Qantas Points when you apply by 31st Aug 2017. (Conditions Apply).
Earn either Membership Rewards or Qantas Frequent Flyer as your rewards program.
Loads of instore benefits and perks at David Jones.
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Yes
20.74% p.a.
ongoing
$295
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Q&As about Repayment Protection Insurance from Customers

Q: How does credit card repayment protection insurance work?

The insurer will pay each month a portion of the credit card debt you had at the time you first became unable to work or lost your job. The amount covered will be only a portion of the total debt, e.g. a monthly payment of 6% of the balance owing at the time you stopped work, plus any interest charged, payable until you return to work. The amount paid is certainly likely to be a sum in excess of the minimum monthly repayment required by the card provider.

There may be a cap on the total amount claimable (e.g. $50,000), or on the length of time for which repayments are covered.

Q: How much does repayment protection insurance cost?

Some prestige cards, particularly American Express business cards, offer repayment protection insurance (in the event of an injury or illness sustained while travelling) as a complimentary benefit, so there is no specific charge to pay, only the card’s annual fee.

Where a card offers more comprehensive repayment protection insurance as an option to be paid for, premium rates and policy conditions vary depending on the insurer. The exact costs and conditions are covered in the product disclosure statement.

The premium will usually be calculated as a percentage of the credit card statement closing balance each month. This may be expressed as 'x cents per $x’. For example, if the premium cost was stated to be ’60 cents per $100’, the monthly premium for a closing balance of $1,937 would be $11.62. The monthly premium thus calculated will be automatically charged to your credit card.

Q: Do all credit cards offer repayment protection insurance?

No. Only individuals holding eligible cards have the option of repayment protection insurance. Where there is a payment involved, there is no obligation to purchase the repayment protection insurance offered.

Complimentary repayment protection insurance is limited to only a very few prestige cards. If the cover is complimentary, you will not need to do anything specific to activate it. It is simply there if you need it.

Q: Why should I need repayment protection insurance?

Consider the benefits of repayment protection insurance if you regularly have a large credit card debt (even if it is only the current month’s purchases) that you or your family would struggle to repay if:

  • You lose your job
  • You become unfit to work as a result of illness, injury or disability
  • You die, and your family no longer has your income to rely on
  • You don’t have a life insurance policy that would enable your family to repay your debts
Q: Who is eligible for credit card repayment protection insurance cover?

You will be eligible if you:

  • Are aged between 18 and 65
  • Are employed, or self-employed, either full time or part time, when you apply for cover
  • Work more than 15 hours per week
  • Are an Australian citizen or visa holder
Q: Who receives the repayment amounts?

If your claim is successful the monthly repayment amounts will be made directly to your credit card provider, not to you.

Q: Can I still make a claim if I get sick pay, workers’ compensation or Centrelink payments?

Yes. Even though you may be receiving one of these other payments as a result of illness, injury or unemployment, you should still be able to claim against your repayment protection cover.

Q: Could my repayment protection insurance claim fail?

Yes. You are unlikely to be covered if:

  • You normally work less than 15 hours per week
  • You become unfit for work as a result of a pre-existing medical condition
  • You resign or take voluntary redundancy
  • You lose your job as a result of pregnancy or childbirth
  • Your employment ceases at the end of a contract or season
  • You are under 18 or over 65 years of age

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We welcome your questions but we cannot help if you need personal financial advice or if have lost your card or need to resolve a dispute with your bank.
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