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.
Conclusion
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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