Press release
Citibank Europe plc, organizační složka
September 9, 2008
Life and Income Protection will help you in case of a temporary reduction in income
Citibank launches a new type of insurance available withits credit cards on the Czech market:Life and Income Protection that will help clients in case of a temporary reduction in their income. Its insuranceserviceswith Citi credit cards thus rank among one of the most comprehensive on the Czech market.Apart from the existing CreditShield insurance (insurance to pay anoutstanding balanceon the credit card), credit card holders may now take out Life and Income Protection, which will provide the client with a regular contribution of up to CZK 5,000 to cover payments and expenses (e.g. gas, power, telephone expenses) in case of a temporary reduction in the client’s income over up to one year.
The new Insurance of Life and Income Protectionis offered by Citibank in cooperation with the insurance company POJIŠŤOVNA CARDIF PRO VITA, a. s., member of the BNP Paribas Group.
The insurance is available in two varieties – the PLUS and STANDARD.No matter which variety the client chooses they will always have the following risks covered:
- death as a result of illness or accident
- total disability as a result of illness or accident
- inability toworkas a result of illness or accident
The STANDARD varietycosts CZK 199 per month and provides a Citi credit card holder with a monthly benefit payment of CZK 2,500 over a period of up to 12 months in case of inabilitytowork as a result of illness or injury, and with a lump sum benefit of CZK 100,000 in case of grantedtotal disability or death as a result of illness or accident.
The PLUS variant is more comprehensive in that it will protect the client in case of involuntary unemployment - the client shall receive a monthly benefit payment of CZK 5,000 over a period of up to 6 months.In case of inability to work the insurance company will pay the client a monthly benefit payment of CZK 5,000 over a period of up to 12 months.In case of total disability or death as a result of illness or accident, similarly to the STANDARD variant, the insured person shall receive a lump sum benefit of CZK 100,000.This all just for CZK 299 per month.
“Clients are looking for products with a high degree of protection, which would at the same time be simple and clear.The advantage of insurance with credit cards is that the client can activate it easily and deal only with their bank," said the Citibank Insurance Product Manager, Zuzana Radimská.
The insurance is optional and valid for the entiretime the credit card is valid.
What does Life and Income Protection cover?
Insurance variant / monthly payment (max 12, or 6 months) / lump sum paymentincapacity for work / loss of employment / total disability / death
STANDARD / CZK 2,500 / - / CZK 100,000 / CZK 100,000
PLUS / CZK 5,000 / CZK 5,000 / CZK 100,000 / CZK 100,000
Example – Involuntary loss of employment
Mr Horáček used to earn a gross monthly income of CZK 23 200, which is an amount corresponding with the currentaverage monthly salary in the Czech Republic.His net monthly income was approximately CZK 17,660.Mr Horáček’s total monthly expenses (rent, gas, power, water, telephone, food, credit card instalment, sport and leisure) equal CZK 13,400.It means that while his employment lasted, he was left with CZK 4 – 5,000 from his net monthly income, which he saved regularly.
Mr Horáček was dismissed due to redundancy and therefore he had to apply for unemployment benefits.In his case, the benefits were approximately CZK 8,390.With such an amount he was unable to cover his monthly payments and expenses.Had he not been insured, he would have had to fall back on his savings.
However, Mr Horáček had taken out Life and Income Protection PLUS with his Citi credit card, with a monthly benefit payment of CZK 5,000 covering also the event of an employment loss.While unemployed, the regular benefit income the insurance company provided him with helped him significantly to pay the fixed payments and expenses so that he was not forced to limit himself or his family too much during those hard times.
Note for editors:
Citi, the preeminent global financial services company has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup’s trademark red umbrella include for instance Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at the following web sites: or .
For more information please contact:
Pavel VlčekKristýna Zbrojková
Public Affairs OfficerCommunication Executive
Tel.: +420233061041Tel.: +420233061029
Mobile: +420 731 425 228
e-mail.: -mail.: