If you think credit cards are just for shopping or booking flights, think again. Most people are unaware that credit cards come with a range of free insurance covers. These covers can protect you in emergencies, save money, and offer peace of mind. Today, let’s explore some of the key insurance benefits you might already have access to with your credit card and how you can make the most of them.
Insurance Covers Available for Free with Credit Cards
Travel Insurance
If you travel frequently, you’ll love this perk. Many credit cards offer travel insurance that covers everything from lost luggage to medical emergencies. Some cards even cover trip cancellations, ensuring that you’re not left stranded in an emergency. If your luggage goes missing for a certain period, you can file a claim for lost items. This feature can be a lifesaver when you’re traveling abroad or in an unfamiliar place.
2. Accidental Insurance
Accidents are unpredictable, but having accidental insurance on your credit card can provide a financial cushion. Many credit cards offer accidental insurance which covers an outstanding balance in case the cardholder meets with an unfortunate accident. This protection is a relief for families, who don’t have to worry about paying off debt during a tough time. Depending on the type of card you have, the cover can vary. For instance, coverage for road accidents may range from Rs. 2,00,000 to Rs. 4,00,000, while aviation accident coverage can be as high as Rs. 40,00,000.
3. Purchase Protection
Ever bought something valuable and lost it shortly after? Many credit cards offer purchase protection, which covers items lost, stolen, or damaged within a certain period after purchase. Depending on the card, you can claim up to Rs. 50,000, giving you peace of mind when making high-value purchases.
Low Premium Insurance Options on Credit Cards
Apart from the free insurance covers, there are additional options you can opt for by paying a nominal premium. Many banks offer comprehensive coverage at a small monthly fee, making it affordable for almost anyone. Here’s a breakdown of the options:
- Credit Life Insurance: This cover ensures that if a cardholder passes away or becomes unable to manage their credit card debt due to disability or unemployment, the bank will take care of the outstanding dues. This removes a significant burden from your loved ones, ensuring they are not left with unexpected debts.
- Credit Disability Insurance: If you suffer from a medical condition that leaves you disabled, this insurance will cover your minimum card payments for a specific period. However, it is important to note that this insurance does not cover any purchases made after the disability occurs.
- Unemployment Insurance: Job loss can bring financial strain. With unemployment insurance, the minimum due on your credit card will be covered if you lose your job suddenly. Like disability insurance, this doesn’t cover purchases made after the loss of employment, but it helps manage existing debt during a difficult time.
Top Banks Offering Insurance Benefits with Credit Cards
Here are some of the top banks that provide impressive insurance benefits with their credit cards:
1. Standard Chartered Bank
The Standard Chartered Visa Infinite Credit Card provides travel and health insurance of up to US$200,000 for international travelers, making it an excellent choice for frequent fliers.
2. HDFC Bank
The HDFC Bank Regalia Credit Card is well known for its luxury perks and comprehensive insurance cover, including protection for air accident death abroad and coverage for emergency medical expenses during travel.
3. IndusInd Bank
The IndusInd Bank Aura Credit Card offers a range of travel-related covers, including Rs. 10,000 for lost luggage, Rs. 50,000 for a lost passport, and Rs. 25,000 for other travel inconveniences.
4. Kotak Mahindra Bank
Kotak’s Royal Signature Credit Card provides protection against fraudulent transactions with a cover of Rs. 2,50,000. The cover is applicable for seven days before the loss is reported, ensuring you’re protected even if you don’t immediately notice the fraud.
5. Axis Bank
Axis Bank Privilege Credit Card comes with air accident insurance coverage of Rs. 2,50,00,000 and purchase protection up to Rs. 1,00,000. It also offers cover for lost travel documents, adding an extra layer of protection when traveling.
How to Maximize Your Credit Card Insurance Benefits
- Read the Terms: While these covers are a huge benefit, be sure to read the fine print. Every card and bank has specific terms and conditions regarding coverage amounts, eligibility, and the process of claiming the insurance.
- Pay Attention to Timelines: Some insurances, like purchase protection, are only valid for a limited time after the purchase. Make sure to file claims within the stipulated period to avoid denial.
- Keep Records: Always save receipts and records of purchases or travel bookings made with your credit card. This will help make the claims process smoother if needed.
Having a credit card can do more than just simplify payments—it can provide a safety net in times of crisis. By understanding the insurance benefits that come with your card, you can stay protected, avoid financial burdens, and make the most of the perks you’re already entitled to.
