^{Starting Out} Safeguarding your future with continuous Credit Shield coverage

Why Credit Shield matters?

Many residents in the United Arab Emirates (UAE), rely on credit cards to manage daily expenses, education costs, or emergencies. However a sudden job loss or a serious illness can have a significant impact on your financial stability.

Without protection, your outstanding balances could become a burden for your family or lead to financial distress. Credit Shield steps in to cover these liabilities, ensuring you and your loved ones aren’t left with debt during difficult times.

Credit shield explained for UAE residents

What is Credit Shield?

Credit shield is a type of optional insurance designed to protect your financial obligations, especially your credit card, in case of unexpected life events. These events may include death, permanent disability, critical illness, or involuntary job loss. This product offers peace of mind and financial stability during challenging times.

Key benefits of Credit Shield

Here’s what Credit Shield typically covers:

• Death (natural or accidental)
  Pays off your outstanding credit card balance up to a specified limit.
• Permanent total disability
  In the event that you are unable to work due to a serious illness or accident, your insurer will clear the outstanding debt after a qualifying period - typically 12 months - providing financial relief during a challenging time.
• Critical illness
  Provides financial protection against serious health conditions such as cancer, stroke, heart attack, kidney failure, and others. Upon diagnosis, your insurer will settle the outstanding balance, easing your financial burden during recovery.
• Involuntary loss of Employment (ILOE)
  Provides monthly payouts to help you manage repayments while you search for a new job.

Protecting your finances: How Credit Shield Insurance works

Understanding how Credit Shield Insurance functions can help you make informed decisions about protecting your financial obligations. From enrollment to cancellation, the process is designed to be simple and accessible for eligible customers.

1. Enrollment
   You can opt-in via your bank’s mobile application or customer service. It’s usually available to primary cardholders who are UAE residents with valid employment.
2. Premiums
   Charged monthly as a small percentage of your outstanding balance, typically between 0.94% to 1.04%.
3. Claims
   In case of an event, you or your family must notify the insurer promptly and submit required documents. Once approved, the insurer pays the bank directly to settle your dues.
4. Cancellation
   You can cancel anytime, but re-enrollment may be restricted for a period (for example, 12 months).

Who should consider Credit Shield?

Credit Shield Insurance may not be for everyone, but it can be a smart choice for those who may be more financially vulnerable during unexpected life events. If you rely heavily on your income to support yourself or others, this coverage could offer valuable peace of mind. Credit Shield is especially useful for:

• Middle-income earners with limited emergency savings.
• Expats who may not have family support in the UAE.
• Parents with dependents relying on their income.
• Individuals with high credit card usage.

Limitations and exclusions

While Credit Shield offers valuable protection, it’s important to understand its limitations:

• Age restrictions
  Coverage typically ends at age 70 for death and 60 to 65 for other benefits.
• Pre-existing conditions
  Illnesses diagnosed before enrollment may not be covered.
• Waiting periods
  Job loss benefits often have a waiting period (90 days after enrollment) and require proof of involuntary termination.
• Coverage caps
  Maximum payouts are capped (certain amount for death or disability and for critical illness)
• Employment criteria
  Only active, full-time employees are eligible for job loss cover.

What you can do today?

1. Review your credit exposure
   Check your current credit card balances.
2. Assess your risk
   Consider your job stability, health status, and family obligations.
3. Explore Credit Shield options
   Visit your bank’s app or website to compare plans.
4. Read the fine print
   Understand the terms, exclusions, and claim procedures.
5. Make an informed decision
   If it fits your needs, enroll and gain peace of mind.
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