By OneCard | February 01, 2024
Credit cards have been a go-to payment option for many as they enable you to spend now and repay later. Also, the additional benefits in the form of reward points, offers, smooth mobile app etc., make the whole experience richer and increases their appeal even more.
Credit card insurance is a unique financial feature that safeguards your financial interests from credit card liabilities. Depending on the type of insurance plan, it can protect you from unauthorised credit card usage, fraud, and emergency expenses during travel.
Certain credit cards offer integrated insurance coverage, including accident protection and travel insurance. Before making a decision, familiarise yourself with the available insurance plans to determine which ones are included with your card.
An insurance plan for credit cards works like any other insurance policy. Here, in case an emergency arrives, you will get financial support as per the terms of the plan you have agreed to.
Like any other insurance policy, you have to file for the claim, and then you will receive the required financial support.
Now, let’s discuss the types of credit card insurance plans available in the market –
You can opt for this insurance plan for every item purchased with your credit card. It is nothing but purchase protection coverage. This can be claimed in case of any damage to the said product or if it is lost or stolen. The tenure of coverage and other details are insurance provider-specific, so review them before buying. This insurance plan is ideal if you are planning to purchase something expensive using your credit card.
This insurance coverage comes in handy when you book your flight ticket using your credit card and any mishap occurs. In such unfortunate incidents, the insurance company will pay the nominee the amount specified in the policy.
Many credit card issuers have partnered up with health companies. As a result, co-branded cards have come into existence that offer several health benefits like consultations, annual check-ups, and many more. You can also avail of a credit card overseas medical insurance.
In case of any credit card misplacement or theft, the cardholder can claim for any fraud or unauthorised transactions made with their card. This type of credit card insurance is convenient, considering the increasing fraud and scams.
There are various advantages of credit card insurance; here are the prominent ones –
There are some things to know before submitting the claim for an insurance plan for credit cards. These are listed below:
Considering what credit card insurance brings, it makes more sense than ever. Enquire about the specifics of insurance coverage on your card by connecting with your card issuer.
**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.