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Discover Financial Services is supplementing its insurance offerings by providing income-loss coverage to its cardholders.
The Income Gap Protection program covers consumers and small-business owners in case of job loss, disability, and other "unexpected life events," the Riverwoods, Ill., card company said Monday.
Individual coverage is available for $19.75 a month for a single policy or $34.75 for a joint policy; small-business owners can get coverage for $23.75 a month. The insurance is written by Central States Indemnity Co. of Omaha.
Karin Giffney, Discover's vice president of protection products, said the program was introduced to address the current environment. "Top of mind for consumers is, how do they weather the economic environment?" she said. "This provides some relief."
In March, Discover announced that it had formed an online center offering automotive, life, and homeowners' insurance and information. The Income Gap Protection program will be eventually be offered there, although it will initially be advertised through other channels, like telemarketing and direct mail. Ms. Giffney said that, like Discover's other insurance programs, the new product is intended "primarily" for existing cardholders. "Our goal is to really provide tools and solutions for our customer base first, that is our focus," she said. However, "we also recognize that there will be a continuing stream of new customers that will come on board as a secondary market."
