Introduction
A credit card can accomplish comparable feats and give you a sense of supremacy. When you are short on cash, you can always rely on a credit card to make purchases or pay bills. Take advantage of the credit card’s rewards programmes to improve your lifestyle. Many people are unaware that credit cards can also offer insurance benefits. People shell out a sizable sum of money for insurance and premium payments. On the other hand, credit card insurance benefits are free to use.
A special programme called credit card insurance is made to shield you against a variety of potential liabilities. This plan gives financial protection from unpaid credit card bills, frauds and unauthorized transactions, as well as costs associated with emergency travel assistance, depending on the type of insurance. If a cardholder wants to enroll in one of these insurance policies, they are frequently asked to pay a monthly or annual charge to the card issuer.
Insurance Covers Offered By Credit Card
The insurance coverage options on a credit card can vary depending on the card’s kind and provider. You’ll receive information on all of the insurance’s features along with your credit card’s welcome package. The following are a few of the less well-known advantages of insurance that can be accessed using credit cards:
- Accidents are unforeseen occurrences that can affect everyone. The credit insurance covers any outstanding credit card amounts up to a maximum of Rs. 50,000 in the event of an accidental death. This sum differs from one credit card company to another, and that must be understood.
- In the event that the credit card is not active, the death certificate must be submitted along with the claim.
Let’s imagine that you are renting an automobile. You decided against paying for the insurance that the car business was offering. Unfortunately, a collision caused considerable damage to the rental car that you had. You have the option to file a claim with the rental car insurance, which provides coverage for any vehicle damage as long as the rental car was paid for with a credit card, as opposed to paying for the damages out of your own money. However, this insurance does not cover theft of anything kept within the automobile or personal injury. - The insurance claim for the rented automobile does not also cover any damage to the second vehicle involved in the collision.
- Getting a personal accident insurance plan is advised because accidents are becoming more frequent on a daily basis. In the event of a death or injury caused by a traffic accident, however, the personal accident insurance programme provided by credit cards may enable you to recover a sum between Rs. 2 lakh and Rs. 4 lakh. An insurance claim between Rs. 10 lakh and Rs. 40 lakh can be submitted in the event of an air mishap. It is important to realize that the coverage varies based on the type of credit card and the credit card company.
- Nobody loves to postpone travel. The exception is when there is an emergency and travels must be cancelled. This means that if you purchase non-refundable aero plane tickets, you will likely lose a significant sum of money. If you purchased your tickets with a credit card, your trip cancellation insurance will pay you back for the loss on your non-refundable tickets. It is crucial to keep in mind that these benefits are not frequently offered with credit cards. This insurance policy does not provide coverage for trip cancellations resulting from weather emergencies or pre-existing medical conditions.
Benefits Of Credit Card Insurance
- Credit card insurance can cover a variety of things, such as roadside assistance, travel, and accidents.
- These credit cards offer the cardholder protection from financial unanticipated occurrences.
- Some insurance credit cards offer defense and insurance coverage against credit card fraud and online scams.
- Some corporate credit cards with the insurance feature allow employers to provide insurance benefits to their employees as well.
- When it comes to severe illnesses, which are frequently quite expensive to treat, credit card insurance can help.
- Loss of income resulting from a temporary or permanent disability or job loss is also covered by credit card protection insurance.
- Credit card insurance also offers coverage for incidents like accidental death or dismemberment.
Insurance Credit Cards From Top Banks
| Insurance Credit Cards | Benefits of Insurance Credit Cards |
| Axis Privilege Credit Card | Up to 2.5 crores are covered for air accidents. Get credit protection for 1 lakh. Purchase a protection plan for up to 1 lakh rupees. Loss of travel documents and Rs. 300 in coverage for delayed checked baggage up to Rs. Rs. 500 loss check-in baggage coverage |
| HDFC Regalia Credit Card | Purchase accidental air death coverage for Rs. 1,000,000Get up to Rs. 15 lakhs in emergency international hospitalization. Get liability coverage for misplaced cards up to Rs. 9,000 |
| Kotak Royale Signature Credit Card | Obtain insurance on any card usage for up to 3 lakhs. |
| IndusInd Bank Platinum Aura Credit Card | Up to 50,000 in insurance coverage for passport loss Insurance up to 25,000 for lost tickets. Up to Rs. 25,000 in insurance coverage for missed connections |
| SBI Signature Corporate Card | Free travel insurance coverage for employees of the relevant organization up to Rs. 1 crore. Free insurance against employee fraud, only available to SBI Corporate Card customers |
How Does A Credit Card Insurance Plan Work?
To fully comprehend how credit card protection insurance functions, let’s use an example. Let’s say you pay the small annual price for a card insurance plan that your credit card company offers. Then you go on to make more transactions with your credit card, leaving a sizable sum due. But before you ever get a chance to pay off your debt, you have an accident that leaves you temporarily disabled for a few months.
Your condition causes you to lose your source of income, which makes it impossible for you to pay your credit card bills. Now that you’ve set up credit card insurance, you can just submit a claim to your card issuer.
This will enable you to pay off your outstanding debts without having any negative effects on your credit score.
Now, bear in mind that depending on the plan you choose, the degree of protection provided by credit card protection insurance may change. Unlike more expensive insurance policies, which are likely to cover bigger sums, low-end insurance plans are simply intended to pay the minimum amount outstanding on your card.
Conclusion
There are numerous benefits to choosing a credit card insurance plan. First of all, you can financially shield yourself against liabilities that you might not be able to handle because of circumstances beyond your control.
You might have experienced a job loss, an accident, or a temporary or permanent disability, for example. Your credit score may suffer greatly if you are unable to pay your credit card bills on time in such circumstances.
By assisting you in paying off your card’s balance on time and guaranteeing that your credit score is maintained in any situation, a credit card insurance plan may shield you from any risks.
Some Credit Cards to look at
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I am an Undergraduate Student pursuing BA English Hons in KIIT University. My hometown is in Cuttack, Odisha. My hobbies include dancing and singing.