Credit Card: In today’s time, almost everyone uses a credit card. Most people consider it limited to only cashless payments and reward points. Still, very few people know that many banks and card companies also provide insurance protection to their customers without charging any additional premium. These insurance facilities are beneficial when a sudden problem arises.
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Life and disability insurance related to a credit card
Credit card companies often provide credit life insurance. In this, if the cardholder dies or is not in a position to pay the dues for any reason, then the bank pays his dues itself. Similarly, disability insurance is also available under which the minimum payment amount of the card is covered by insurance for some time if the cardholder becomes incapable.
It also helps when you lose your job
Unemployment insurance is also included in many cards. If a person is involuntarily fired from the job, then this insurance covers the minimum payment amount of the card. However, new expenses incurred after losing the job are not included in this facility.
Protection on purchases too
Purchase protection insurance is also available on purchases made with credit cards. If the purchased goods are stolen or damaged, the insurance company compensates for them. This cover applies to purchases made up to a certain limit.
Travel and accident cover
Some premium credit cards also provide travel insurance. This includes situations like lost luggage, trip cancellation, or medical emergency abroad. Apart from this, accidental insurance is also available, in which there can be a cover of lakhs of rupees on road accidents and crores of rupees on air accidents.
Protection from fraud
In the digital age, the possibility of fraudulent transactions with cards increases. In such a situation, many banks also provide fraud protection cover. If reported on time, the insurance company provides a cover of up to lakhs of rupees to the cardholder.
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Which banks provide these facilities
Many big banks in India provide free insurance cover to their cardholders. Like…
- HDFC Bank Regalia card offers medical and air accident cover for foreign travel.
- Axis Bank Privilege card offers air accident cover of up to Rs 2.5 crore and purchase protection of up to Rs 1 lakh.
- Kotak Royale Signature card offers up to Rs 2.5 lakh cover on fraudulent transactions.
- IndusInd Aura card offers cover of Rs 10,000 to Rs 50,000 on lost luggage or passport during travel.