When individuals apply for a credit card, they are generally offered credit card insurance plans from a 3rd party insurance company. Such an insurance provider is usually in liaison with your credit card issuer.
Advantages of purchasing a credit card insurance policy
The benefits offered under credit insurance policies vary across credit card issuers and the type of credit card. Such covers primarily offer card protection plans when you avail a new credit card along with additional advantages, few of them are –
- Coverage on outstanding dues
Accidents are an unexpected event which can happen to anyone; if a cardholder is deceased due to an accident, the credit insurance plan helps in waiving off the outstanding due amounts on the credit card.
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However, the outstanding due is waived off up to a certain amount only which depends on the credit card issuer and the features of the insurance policy. In order to claim the sum assured, the nominee of the policyholder may have to provide the death certificate of the cardholder in such a scenario.
- Purchase protection
Such a protection plan is the most popular among various credit cardholders as the items purchased using the card are insured. This insurance plan helps to lower the replacement and repair costs of these damaged or misplaced items. As per the insurance provider, customers can avail financial security for up to a certain period against the concerned item which is purchased with the credit card.
- Baggage insurance plan
Credit card insurance also provides financial cover on your travel accessories if they are lost or misplaced in the railway station, airport, etc. considering you have purchased the train or flight tickets with your credit card.
Purchasing such a plan also helps in reimbursement of the losses suffered from non-refundable tickets in case of cancelled flights and trains. If you are looking forward to financially secure yourself further, you can opt for a Wallet Care insurance plan provided by insurance aggregator Bajaj Finserv under Pocket Insurance & Subscriptions. Check for a best credit cards like Platinumoffer, Doubleyourline & more. Choose the best one. With the help of such a card protection insurance plan, you can avail a financial cover on all the items in your wallet i.e. credit cards, debit cards, identity cards, etc.
Things to keep in mind while claiming credit card insurance policy
Consider the following steps to make your credit card protection insurance policy claim hassle-free –
- The terms and conditions of your insurance plan need to be studied thoroughly before initiating your claim process. So, opt for a card protection plan review before claiming the insurance plan.
- Keep your insurance policy documents handy.
- Premium payments should be made on time to avoid any issues.
- It is advised to opt for a written claim with the necessary documents attached. Several claims are known to be rejected due to improper claiming methods.
So, you are required to provide your KYC and other documents offering identity proof to the insurance provider during your claim process. In order to financially secure yourself against losses or damages to these important documents, you can opt for an identity theft cover insurance policy.
Hence, from the above discussion, you can gauge an idea of the various benefits of purchasing a credit card insurance policy. You can also opt for a purse care plan which also features a 24×7 card blocking service like the wallet care.