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ASB Credit Card Repayment Insurance

Please note ASB Credit Card Repayment Insurance is no longer available for new customers. This page is to help existing ASB Credit Card Repayment Insurance customers understand what benefits they are covered for.

Improvements to your ASB Credit Card Insurance take effect from 29 September 2020 and will apply to any new claims events occurring on or after this date. Your policy is provided by AIA New Zealand Limited (AIA, formerly known as Sovereign).

You do not need to do anything for the improvements to apply to your policy. We do encourage you to read the information below and contact us if you have any questions.

What improvements have been made?

AIA regularly reviews its products to ensure they are providing you with good value. Your policy has been updated to include the following enhancements.

Permanent Disablement

  • Reduction in the wait period from 6 months to 3 months

Temporary Disablement

  • The limit for the maximum amount you can claim has increased from $50,000 to $60,000
  • The assessment criteria for employed and self-employed customers has been improved and their claim for Temporary Disablement will be assessed on their inability to perform the key income producing duties of their role for at least 10 hours per week for 30 consecutive days
  • The assessment criteria for unemployed customers has been improved and their claim will be assessed on their inability to carry out normal household duties for at least 10 hours per week for 30 consecutive days

Suicide or deliberate injury exclusion

  • The suicide or deliberate injury exclusion has changed from being a permanent exclusion to a 13-month stand-down from the policy start date

You can find full details of these changes in our ASB Credit Card Insurance product change document.

Full details

We’ve also reduced your premiums. This means that from 29 September 2020, your ASB Credit Card Repayment Insurance premium will be $0.32 per $100 outstanding on your credit card for single cardholders and $0.55 per $100 outstanding on your credit card for joint cardholders.

Cover and claim eligibility

It is important to understand your cover and claim eligibility should you ever need to claim. Read through our Benefit brochure to find out more.

Benefits at a glance

  • The balance of your ASB credit card (up to $50,000) can be paid in the event of you passing away or diagnosis of a terminal illness

  • You're covered 24 hours a day anywhere in the world

  • You pay no monthly premium when your ASB credit card has a zero balance at the monthly statement date

  • Pays 15% of your credit card debit balance for up to 24 months ($60,000 max), if you are temporarily disabled for more than four weeks

Policy cover

What is Credit Card Repayment Insurance?

ASB Credit Card Repayment Insurance can help provide financial assistance with your credit card repayments in the event of your death, illness, injury, redundancy or bankruptcy. 

This cover does not include additional protection to cover things such as rent, school fees and other every day expenses.

If you are an ASB Credit Card Repayment Insurance customer, consider reviewing your cover to ensure that it is still right for you, as circumstances change and so can your insurance needs. Simply call us on 0800 200 252, come into any ASB branch or fill out an enquiry form. We’re happy to help.

What you're covered for:

When considering the suitability of this insurance it is important to understand that your eligibility and the claims criteria for some of the benefits are dependent on your current working arrangements and your age. As this might have changed since you took out the policy, it is important to review your policy.

What benefit can it provide?

Events you can claim for1
What benefit will be paid
Stand-down period
You are temporarily disabled as defined under the policy.
Different definitions of temporary disablement apply depending on employment status.
A monthly payment equal to 15% of your ASB credit card account debit balance2 to a maximum of 24 months or $60,000 (whichever happens first).
14 days after the policy start date.
You are permanently disabled as defined under the policy.
Different definitions of permanent disablement apply depending on employment status.

A payment of the total debit balance2 of your ASB credit card account to a maximum of $50,000.

An additional 15% of this payment as a Cash Assistance benefit.

14 days after the policy start date.
You are diagnosed with a critical illness as defined under the policy.
No employment conditions apply.
A payment of the total debit balance2 of your ASB credit card account to a maximum of $25,000.
3 months after the policy start date.
You pass away or are diagnosed as having a terminal illness as defined under the policy.
No employment conditions apply.
A payment of the total debit balance2 of your ASB credit card account to a maximum of $50,000.  An additional 15% of this payment as a Cash Assistance benefit.
14 days after the policy start date.
Your spouse or child passes away or is diagnosed as having a terminal illness as defined under the policy.
No employment conditions apply.
A payment of the total debit balance2 of your ASB credit card account to a maximum of $5,000.  
14 days after the policy start date.
You are made involuntarily redundant and are unable to find work for more than 30 days.
You must have been working for financial gain in a permanent job for at least 20 hours per week.
A monthly payment equal to 15% of your ASB credit card account debit balance2 to a maximum of 6 months or $25,000 (whichever happens first).
30 days after the policy start date.
You are self-employed and made bankrupt.
You must be self-employed for financial gain for at least 20 hours per week.
A payment of the total debit balance2 of your ASB credit card account to a maximum of $25,000.
30 days after the policy start date.

1: The above information is a summary of benefits only. Benefit exclusions, stand-down periods and eligibility criteria apply. Please refer to your policy document for full terms and conditions.

 

2: The balance immediately before the event that you are claiming for.

For full details of the exclusions relating to this policy, please refer to the benefit sections of the Policy Wording.

Breakdown of employment eligibility

 

Events you can claim for 1 
You are employed for financial gain for 20 or more hours a week
You are self-employed for financial gain for 20 or more hours per week
Other policyholders
You pass away or are diagnosed as having a terminal illness as defined under the policy.
You are diagnosed with a critical illness as defined under the policy.
You are temporarily disabled as defined under the policy, for more than 30 days.

Your temporary disability must prevent you from performing, for at least 10 hours a week, the key income producing duties of the role you were involved in prior to disablement, for a period of 30 consecutive days or more.

Your temporary disability must prevent you from performing, for at least 10 hours a week, the key income producing duties of the role you were involved in prior to disablement, for a period of 30 consecutive days or more.

Your temporary disability must prevent you from carrying out normal household duties for at least 10 hours a week for a period of 30 consecutive days or more on medical advice acceptable to AIA.
You are permanently disabled as defined under the policy for more than three months.

Subject to you having a disability which in the opinion of AIA will prevent you ever again engaging in all of the duties relating to what they consider to be your usual occupation.

Subject to you having a disability which in the opinion of AIA will prevent you ever again engaging in all of the duties relating to what they consider to be your usual occupation.
Subject to you being under age 70 at time of claim, alternative criteria applies.

For full details of claim criteria please refer to page 12 of the policy wording.
Your spouse or child passes away or is diagnosed as having a terminal illness as defined under the policy.
You are made involuntarily redundant and are unable to find work for more than 30 days.
Not Eligible
Not Eligible
You are self-employed and made bankrupt.
Not Eligible

Subject to you being self-employed for financial gain for at least 20 hours per week.
Not Eligible

The above information is a summary of benefits only. Benefit exclusions, stand-down periods and eligibility criteria apply. Please refer to your policy document for full terms and conditions.

What you are not covered for

There are a number of circumstances called 'exclusions', when AIA will not pay a benefit under your policy.

These include claims resulting from:

  • Pre-existing medical conditions, within 6 months of your policy start date
  • Suicide or deliberate injury within 13 months of your policy start date
  • Excess breath or blood alcohol
  • Misuse of drugs, or non-compliance with medical treatment
  • Pregnancy
  • Criminal conduct
  • A terminal illness diagnosed prior to commencement of the policy.

For full details of the exclusions relating to this policy, please refer to the benefit sections of the policy wording.

Is it mandatory to have ASB Credit Card Repayment Insurance?

It is not mandatory to have Credit Card Repayment Insurance. If your circumstances have changed or if you think this insurance may no longer be suitable for you, it is important to let us know. We can help you review your current insurance needs and ensure you have the insurance solution that's right for you.

How much it costs

The cost of this insurance is 32 cents (joint cover 55 cents) for each $100 (pro-rated) of your monthly closing debit balance. For example, if you receive your monthly credit card statement that shows a balance of $1,010, your insurance premium for that month will be $3.23 for single cover ($1,010 x 0.32% = $3.23). You will only pay a premium when there is an outstanding balance on your monthly credit card statement - if there is a zero or credit balance on your statement then you won't pay any premium for that month. Your premium will be added to your credit card account at the end of each billing month but will not attract any interest charges.

When will your policy end?

Unless it is cancelled earlier by you, your policy will finish when your credit card account closes, if you stop paying the premiums, if you reach age 100, if we make a lump sum payment under the terms of the policy (excluding those made on the Death or Terminal Illness of a spouse or child) or if all ASB Credit Card Repayment Insurance policies are cancelled under the terms of the policy.

In what circumstances might this insurance be unsuitable for you?

This policy may not be suitable for you if:

  • You have existing insurance which provides all or a number of the same benefits
  • You do not fully understand the policy's benefits and terms, and feel unable to make an informed decision
  • Your employment status means you may not be eligible for a number of the benefits

Please note, it is important that you have considered whether you can afford this premium in addition to your credit card repayment.

How can you cancel your policy?

You can cancel this policy anytime by calling us on 0800 501 223 or visiting your nearest ASB Branch and completing an Insurance Cancellation Form.

ASB and AIA - a partnership you can trust

Partnership is all about trust. When it comes to protecting you and your family's financial wellbeing, you can trust ASB and AIA to be there for you. ASB has helped thousands of New Zealanders protect themselves over the years. Our ASB Insurance Managers and frontline teams make life, loan, health, and income protection insurance easy. It's about keeping you one step ahead, by making sure difficult and even heart-breaking situations don't turn into financial setbacks as well. We’ve now partnered with AIA, New Zealand's largest* life insurance company. As our underwriter, they stand behind all our policies.

All licensed insurance providers are required to have a financial strength rating from an approved rating agency. You can find details of AIA's current rating and rating agency at www.aia.co.nz, or at any office of AIA New Zealand Limited.

View AIA's financial strength rating.

Find out more about the relationship between ASB and AIA.

Making a claim

To claim on your ASB Credit Card Repayment Insurance policy, simply contact us on 0800 501 223 or visit an ASB Branch to get an insurance claim form.

Once completed, please return the form to us by:

  • Scanning the documentation and emailing it to insurances@asb.co.nz or;
  • Posting it to:
    Insurance Operations
    ASB Bank
    PO Box 35
    Shortland Street
    Auckland 1140
    New Zealand

Once we've received your form, we'll be in touch to confirm the claim has been received and request any further information if required to assess the claim. There may be some instances when you are unable to make a claim. You can find out more in the policy wording.

Time to review your insurance needs?

We can help you review your current insurance needs and ensure you have the insurance solution that is right for you.

Call us

Simply call us on 0800 200 252.

0800 200 252

Enquire now

Come into any ASB branch or fill out an enquiry form . We're happy to help.

Enquire now

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*AIA is the largest life insurer in New Zealand by market share. Source: Q3-20 Market share data from New Zealand Financial Services Council.

The information contained in this brochure is general in nature and is not intended to be advice. It may not be relevant to individual circumstances and before making any investment, insurance or financial planning decision you should consult a professional adviser. If you require advice about your particular circumstances in relation to any ASB insurance product, we recommend that you speak with ASB. Copies of our disclosure statements are available on request free of charge. The availability of insurance cover is subject to your application being approved. All applications are subject to individual consideration. Special conditions, exclusions or premium loadings may apply. An excess may apply for health insurance policies. For full details refer to the policy document which is available on request from any ASB branch. This insurance is underwritten by AIA New Zealand Limited ("AIA").

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