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. for 24 months on balance transfers with no balance transfer fee. Reverts to variable cash advance rate.
Low ongoing variable purchase interest rate of 12.74% p.a.
$99 p.a. annual fee.

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.

repayment insurance
purchase rate
annual fee
Apply
St.George Vertigo Platinum Credit Card Exclusive Offer
Apply by 17 dec 18
0% p.a. for 24 months on balance transfers with no balance transfer fee. Reverts to variable cash advance rate.
Low ongoing variable purchase interest rate of 12.74% p.a.
$99 p.a. annual fee.
More info
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-
12.74% p.a.
ongoing
$99
ongoing
Citi Rewards Platinum Card Balance Transfer Offer
Apply by 31 mar 19
0% p.a. for 24 months on balance transfers.
One-off 1.5% balance transfer fee applies.
Reduced annual fee of $49 p.a. in the first year ($149 p.a. thereafter).
More info
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Yes
20.99% p.a.
ongoing
$49
1st year
then $149
0% p.a. for the first 15 months on balance transfers with no balance transfer fee.
Low 12.49% p.a. ongoing rate on purchases.
Low annual fee of $58 p.a.
More info
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Yes
12.49% p.a.
ongoing
$58
ongoing
Woolworths Everyday Platinum Credit Card Balance Transfer Offer
Apply by 31 jan 19
1.99% p.a. on balance transfers for 12 months and then 21.99% p.a.
Get a $50 Woolworths eGift Card* (Spend Conditions Apply).
$0 annual fee for the first year, saving you $49.
More info
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Yes
19.99% p.a.
ongoing
$0
1st year
then $49
No foreign transaction fees on purchases when travelling or shopping online.
No currency conversion fees.
$0 p.a. annual fee.
More info
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Yes
21.99% p.a.
ongoing
$0
ongoing
Skye Mastercard
90 days interest free on all card purchases.
No annual fee for the first year ($99 p.a. thereafter).
No foreign transaction fees for online and overseas purchases.
More info
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Yes
23.99% p.a.
ongoing
$0
1st year
then $99
0% p.a. for 13 months on purchases.
Minimum credit limit of $1,000
0% p.a. for 13 months on balance transfers. (2% balance transfer fee applies).
More info
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Yes
13 months
0% p.a.
then 12.99%
$79
ongoing
Citi Simplicity Card
Apply by 31 mar 19
No annual fee.
0% p.a. for 6 months on balance transfers.
Complimentary purchase cover insurance, transit accident insurance, extended warranty insurance and guaranteed pricing scheme.
More info
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Yes
19.99% p.a.
ongoing
$0
ongoing
Bendigo Bank Platinum Rewards Mastercard
Apply by 31 jan 19
Get 75,000 bonus Rewards Points when you apply online by 31 January 2019, are approved and spend $2,500 in the first 3 months.
Earn 1.5 Bendigo rewards points for every $1 spent.
180 days international travel insurance.
More info
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Yes
19.99% p.a.
ongoing
$89
ongoing
Receive 20,000 points or 15,000 Qantas Points. (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.
More info
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Yes
20.74% p.a.
ongoing
$99
ongoing
0% p.a. for 6 months on purchases.
Make purchases with NAB’s lowest interest rate card and longest interest-free period.
Low $59 p.a. annual fee.
More info
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Yes
6 months
0% p.a.
then 13.99%
$59
ongoing
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Q&A's 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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