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What is Credit/Debit Card Insurance?

This tech-savvy generation relies on credit or debit cards for making payments. From grocery/shopping to availing loans and from monthly bills to daily expenditures, the use of payment cards is quite wide-ranging. Nevertheless, one might experience unfavorable events that can affect the regular income.

Likewise, job loss and critical health ailments lead to financial instability, turning one's life upside down. Consequently, all your financial commitments will come to a pause. Hence, debit or credit card insurance will be your ultimate savior!

What is Credit/ Debit Card Insurance?

Precisely, credit or debit card insurance protects you against financial liabilities. It makes important monthly payments and pays out the outstanding balance on your behalf to the issuer of your payment card. Usually, it happens when your income gets interrupted due to any inevitable mishaps.

Why to Get Credit Card Insurance?

One has to fulfill the financial liabilities even in the case of a job loss. Besides, certain unforeseen adversities such as disability, life-threatening illness or even death can knock on your door anytime. That is why you must secure yourself financially. When a person is unable to take card payments on due time, it degrades the credit rating.

Therefore, having insurance for debit or credit cards will come in handy in such circumstances. Above all, the credit card insurance cover is comprehensive and ensures that you stay secure optimally against vital financial commitments.

Benefits of Credit/ Debit Card Insurance Cover

Life is so unpredictable and we may never know what the next moment has in the basket for us. That is why; it is always a better idea to stay safe financially! The following are the striking benefits of credit card insurance coverage.

Wards off the financial liabilities: If your income has been affected due to any misfortune, there is no need to worry about the vital financial liabilities. It also aids in maintaining the credit rating, thereby warding off the monetary burden.

  • Optimal Cover Amount: The insurance for credit cards offers an optimum coverage amount that differs from one bank or financial service provider to another. However, the premium depends on the type of coverage and the liability amount one owes on the card. There will be a maximum limit for the coverage that one can avail under the insurance plan for the credit card.
  • Coverage for Job Loss and Disability: If you become jobless or encounter a disability that makes you incapacitated to earn, the insurance plan will bear the financial responsibilities. However, there will be a pre-defined limit for the claim; the insurance will lessen the monthly monetary load to a greater extent.
  • Coverage against Critical Illness: It will cost you a bomb if you are undergoing expensive medical treatment for critical illness. As a result, you will have to spend a hefty amount of sum on the treatment. Therefore, insurance for the credit card will aid you in coping with the monetary liabilities. Thus it can bring financial instability into your life.
  • Coverage for Accidental Death or Dismemberment: There are specific plans that are customized for particular client segments. Students as well as spouses of the prime insured cardholder fall under this category. If the insured cardholder is dismembered or suffers accidental death, the insurance plan will pay the entire outstanding balance of the credit card.

Did you know, a good CIBIL score can help you get a better deal on loans and credit cards?