Credit cards today offer more than just a payment method—they come with a variety of insurance benefits that can provide financial protection during unexpected events. Understanding the different types of credit card insurance can help you make the most of these features.
1. Credit Life Insurance
- Coverage: Pays off the outstanding credit card debt if the cardholder passes away or becomes incapacitated.
- Benefit: Relieves the family from the burden of paying off the debt during tough times.
2. Credit Disability Insurance
- Coverage: If the cardholder becomes disabled, the minimum payment is covered for a specific period.
- Limitation: Only covers payments made before the disability, not new purchases.
3. Involuntary Unemployment Insurance
- Coverage: If the cardholder loses their job involuntarily, the minimum payment is covered.
- Limitation: Doesn’t cover purchases made after the job loss.
4. Travel Insurance
- Coverage: Includes lost baggage, trip cancellations, and medical emergencies while travelling.
- Example: If luggage is delayed, you can claim a refund after a certain period.
5. Accidental Death Insurance
- Coverage: Waives the outstanding balance in case of accidental death.
- Benefit: Provides additional security for your family.
6. Accident Insurance
- Coverage: For injuries or death caused by accidents, with varying amounts based on the type of accident.
- Example: ₹2-4 lakh for road accidents, up to ₹40 lakh for aviation accidents.
7. Purchase Protection
- Coverage: Protects against damage or theft of purchased items within a specific timeframe.
- Claim: You can claim up to ₹50,000 for eligible purchases.
Top Banks Offering Credit Card Insurance
- Standard Chartered Bank: Travel and medical insurance up to $200,000 with Visa Infinite cards.
- HDFC Bank: Regalia card includes air accident and medical emergency coverage.
- IndusInd Bank: Aura card offers coverage for lost baggage, passport loss, and travel inconveniences.
- Kotak Mahindra Bank: Royale Signature card covers fraudulent transactions up to ₹2,50,000.
- Axis Bank: Privilege card offers air accident coverage of ₹2.5 crores and purchase protection up to ₹1,00,000.
Make sure to review your card’s insurance benefits to understand the coverage and how it can provide financial peace of mind.