Federal Bank has launched sachet life insurance product ‘Group Credit Shield’ for its Credit Card holders in association with Ageas Federal Life Insurance. The insurance product is exclusively available to Federal Bank credit cardholders.

Insurance cover under Group Credit Shield equals the credit limit and is capped at a maximum limit of ₹3 lakh. This means even if a Credit Card holder has a credit limit of over ₹3 lakh, they will get maximum coverage of ₹3 lakh. The life cover comes with a term of one year only and is a single premium plan.

“This hassle-free and innovative sachet product requires no additional documents, no medical examinations, and is a single premium plan," the bank said in its statement. Federal Bank credit card holders can buy the insurance product online within 3 minutes with just a few clicks.

“The Group Credit Shield product is designed to enhance Federal Bank’s credit card proposition. The ease and convenience that a completely digital process provides will surely add to customer convenience. By offering such bite-sized, bundled products, we hope to further increase insurance penetration in the country," said Shalini Warrier, Executive Director, Federal Bank.

Federal Bank currently offers three variants of credit cards Celesta, Imperio and Signet in association with Visa, Mastercard and Rupay, respectively. Each card is designed to cater to the needs of different segments of customers, the bank said.

Karthik Raman, Chief Marketing Officer and Head - Products, Ageas Federal Life Insurance said, “We are delighted to partner with Federal Bank to introduce our Group Credit Shield for Federal Bank’s Credit Card customers. Group Credit Shield provides customers a life insurance cover that will secure their credit spends and protects their loved ones from having to shoulder the burden of repaying the debt in case of an unfortunate incident."