Almost everyone has a credit card, which many people use for purchases. However, very few know the many valuable features of credit cards.
One significant feature is insurance. Did you know that credit cards provide various types of insurance at no extra cost? Simply being a cardholder automatically grants you access to this coverage.
The insurance offered by credit cards ensures that users receive an amount equal to the coverage in the event of an accident.
Here are the types of insurance available with a regular credit card:
1. Travel Insurance
- Trip Cancellation/Interruption: This coverage reimburses prepaid, non-refundable expenses if your trip is canceled or interrupted for reasons covered under the policy (e.g., illness or severe weather).
- Travel Delay: This covers expenses such as accommodation, meals, and transportation if your trip is delayed for a specified number of hours.
- Lost or Damaged Luggage: This insurance compensates for lost, stolen, or damaged luggage during travel.
- Emergency Cover: This includes medical or evacuation costs if you are injured or fall ill abroad.
2. Purchase Protection: This offers coverage against theft or accidental damage to an item purchased within a certain period—usually 90 to 120 days.
3. Extended Warranty: This extends the manufacturer’s warranty on eligible items, typically by one or two years.
4. Return Protection: You can return eligible items within a specified timeframe, even if the retailer does not accept returns.
5. Mobile Insurance: Similar to purchase protection, this covers damage, theft, or loss of your mobile phone when purchased using the card.
6. Fraud Protection: This limits your liability to zero in the case of unauthorized charges or fraud; however, the card issuer may impose certain conditions for this coverage to apply.
7. Credit Shield Insurance: Repaying any outstanding loans can be challenging in the event of the cardholder’s death. Credit shield insurance can help pay off the loans accrued through credit card use up to a pre-determined limit.
8. Accident Cover: Some credit cards offer additional accident insurance coverage for the cardholder, ranging from ₹5 lakh to ₹10 lakh.
Knowing these features can help you maximize your credit card benefits.