Credit Card Insurance Benefits

A credit card can do similar wonders and make you feel on top of the world. Whether it's paying bills or shopping, you can always depend on a credit card when you are low on cash. Enjoy all the rewards that the credit card offers and enhance your lifestyle. What many people do not know about credit cards is that it can provide insurance benefits too. People spend a substantial amount of money on buying insurance and paying premiums. However, with the credit card insurance benefits can be availed free of cost.

Insurance Covers offered by Credit Card

Depending on the type of credit card and the credit card issuer, the credit card can offer several insurance covers. Details about all of the benefits offered by the insurance will be provided with the welcome kit of your credit card. Some of the lesser known benefits of insurance that can be availed with credit cards are mentioned below:

1. Accidents are unexpected events and can happen to anyone. If there is an incident of accidental death, then the credit insurance waives off all the outstanding balances up to an amount of Rs.50,000 on the credit card. One must understand that this amount varies from one credit card issuer to another. In case, the credit card is not active, then the certificate of death must be provided with the claim.
2. Let's say, you are taking a car on rent. You chose not to make the payment for the insurance that is offered by the car company. Unfortunately, the car that you took on rent suffered some damage due to a collision. Instead of making a payment for the damages from your own pocket, you can choose to claim for the rental car insurance that offers coverage for any car damage as long as the car rental has been paid using a credit card. However, personal injuries and theft of items kept inside the car are not covered under this insurance. Any damage caused to the other vehicle in the collision is also not covered under the rental car insurance claim.
3. The number of accidents is increasing on a daily basis and it is advisable that you get a personal accident insurance plan. However, the personal accident insurance scheme offered by credit cards can help you claim an amount between Rs.2 lakh and Rs.4 lakh, in the event of death or injuries due to road accidents. In case of an air accident, an insurance claim between Rs.10 lakh and Rs.40 lakh can be made. One must understand that the coverage amount will differ depending on the type of credit card and the credit card issuer.
4. No one likes to cancel trips. However, if there is an emergency situation, then trips do get cancelled. This suggests that you will end up loosing a substantial amount of money on the non-refundable flight tickets. In case you booked your tickets using your credit cards, the trip cancellation insurance policy will reimburse the loss that you suffered for your non-refundable tickets. It is very important to remember that these benefits are rarely provided with the credit cards. Any cancellation of trip caused due to pre-existing illness or weather turbulence is not covered under this insurance plan.