Credit Card Repayment Insurance

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.

3 reviews
0% p.a. for 18 months with 0% fee on balance transfers. Reverts to cash advance rate.
Reduced annual fee of $49 p.a. for the first year ($99 p.a. thereafter).
Complimentary overseas travel insurance and extended warranty on purchases.

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
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No foreign transaction fees on purchases when travelling or shopping online.
Free Global Wi-Fi at more than 1 million hotspots worldwide.
$0 p.a. annual fee.
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Yes
21.99% p.a.
ongoing
$0
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Bank of Melbourne Vertigo Platinum Credit Card
Apply by 02 oct 19
3 reviews
0% p.a. for 18 months with 0% fee on balance transfers. Reverts to cash advance rate.
Reduced annual fee of $49 p.a. for the first year ($99 p.a. thereafter).
Complimentary overseas travel insurance and extended warranty on purchases.
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Yes
12.99% p.a.
ongoing
$49
1st year
then $99
Bank of Melbourne Vertigo Visa
Apply by 02 oct 19
10 reviews
0% p.a. for 16 months on balance transfers with no balance transfer fee. Reverts to cash advance rate.
$55 p.a. annual fee.
Low ongoing variable purchase interest rate of 13.99% p.a.
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Yes
13.99% p.a.
ongoing
$55
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0% p.a. for 12 months for balance transfers and a one-off credit plan establishment fee of 1%.
Pay no annual card fee.
Earn up to 1.75 Qantas points per $1 spent on Qantas flights, goods, and services.
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No
20.74% p.a.
ongoing
$0
ongoing
Bank of Melbourne Amplify Credit Card
Apply by 02 oct 19
4 reviews
0% p.a. for 14 months on purchases.
Flexibility to choose the rewards program that better suits you.
Up to 55 days on purchases.
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Yes
14 months
0% p.a.
then 19.74%
$79
ongoing
Bank of Melbourne Amplify Platinum Credit Card (Amplify)
Apply by 02 oct 19
Up to 100,000 Bonus Amplify Rewards Points. Conditions Apply.
0% p.a. for 6 months on balance transfers. Reverts to cash advance rate.
No cap on the number of points you can earn.
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Yes
19.74% p.a.
ongoing
$99
ongoing
Bank of Melbourne Amplify Platinum Credit Card (Qantas)
Apply by 02 oct 19
2 reviews
Earn 60,000 Qantas bonus points. Conditions Apply.
Flexibility to choose the rewards programs that better suits you.
No cap on the number of points you can earn.
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Yes
19.74% p.a.
ongoing
$99
ongoing
Bank of Melbourne Amplify Signature Credit Card (Amplify)
Apply by 02 oct 19
Up to 200,000 Bonus Amplify Rewards Points. Conditions Apply.
Reduced annual fee of $179 in the first year, currently saving you $100.
Every year get a birthday bonus with a 10% extra points of the total points earned in the previous year.
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Yes
19.74% p.a.
ongoing
$179
1st year
then $279
Bank of Melbourne Amplify Signature Credit Card (Qantas)
Apply by 02 oct 19
Up to 90,000 points Qantas points. Conditions Apply.
Reduced annual fee of $179 p.a. in the first year, currently saving you $100.
Every year get a birthday bonus with a 10% extra points of the total points earned in the previous year.
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Yes
19.74% p.a.
ongoing
$179
1st year
then $279
BankSA Amplify Credit Card
Apply by 02 oct 19
3 reviews
0% p.a. for 14 months on purchases.
Earn 1 Amplify point per $1 spent.
Up to 55 days on purchases.
More info
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Yes
14 months
0% p.a.
then 19.74%
$79
ongoing
BankSA Amplify Platinum Credit Card (Amplify)
Apply by 02 oct 19
Earn up to 100,000 points Bonus Amplify Rewards Points (conditions apply).
No cap on the number of points you can earn.
Enjoy 0% p.a. for 6 months with 0% fee on balance transfers.
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Yes
19.74% p.a.
ongoing
$99
ongoing
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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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