Credit Cards with Insurance Benefits

You definitely have listened about life insurance, car insurance, health insurance and fire insurance but few know about credit card with insurance benefits.

Shopping by credit card is a normal process.

Suppose, you usually purchase goods by credit card and you are regular in making payment of dues of credit card monthly basis.

But what happens if an uncertainty happens like job loss, disability and critical illness and death etc.

In such a situation you are not able to make the payment of credit card dues.

So to handle such situations the concept of credit card insurance arises.

You must know about how does credit card insurance work.


    What is credit card insurance?

    Credit card companies offer several benefits along with issuing credit cards. One of such benefits is credit card insurance.

    If you are not able to make payment for your credit card then an insurance company will help you to pay your outstanding due with the help of credit card insurance.

    To avail this facility you have to pay a premium on a monthly basis.


    What are the credit card insurance benefits?

    There are various insurance benefits with credit cards which will be received on credit cards facility. Some of these are:


    Help in emergency

    There might happen that while travelling, you lose your wallet and you do not have any cash to spend.

    So to handle such a situation many credit card companies provide insurance against such an emergency on your credit card.

    They provide cash to you through the bank where you travel. You have to return cash after coming back from travelling.

    So this facility shows “how does credit card travel insurance work?” benefit to you and also benefit for travel by air.


    Insurance of air accident

    Credit cards provide air accident insurance if someone lost his life in an air accident then his family gets the amount of air accident insurance.

    The condition is different for different credit cards. He has to pay a premium of insurance on time.


    Loss of credit card

    Suppose you lose your credit card and someone misuse it then you will suffer huge loss.

    If you are protecting your credit card by insurance and you inform the credit card company in time, you do not bear the loss on the credit card.

    Insurance company pays the amount on your credit card bill. You have to prove to the insurance company that your credit card has been misused.

    Along with some credit cards also provide insurance against medical emergencies, loss due to fire etc.


    Point to remember

    The point to remember is that benefits may vary from bank to bank and from card to card.

    You need to study your credit card terms and conditions carefully. You should clarify with your bank what type of insurance benefit is attached to your credit card.

    If not attracted then you can get a facility by paying a premium on a monthly basis.



    It is important to understand the type of credit card insurance which is beneficial for you and you need not to take separate insurance for small medical expenses, travelling expenses etc. If you are already availed the credit card with insurance benefits.

    For this facility, you need to pay your insurance premium on time. It is generally on a monthly basis and this facility is received keeping in mind your credit card balance.

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