ARTICLES

Credit card insurance is a type of insurance that is designed to protect credit card users from certain types of financial loss. The insurance typically covers the outstanding balance on the credit card in the event of the cardholder’s death, disability, or job loss. It can also provide coverage for fraud or unauthorised use of the card.

One of the key features of credit card insurance is that it can provide peace of mind to cardholders, knowing that they are protected in the event of an unexpected circumstance. Additionally, credit card insurance can help cardholders avoid the negative consequences of falling behind on payments, such as late fees, interest charges, and damage to their credit score.

Why do you need it?

The benefits of credit card insurance are many.
If you're someone who relies heavily on your credit card for everyday purchases and travel expenses, then investing in credit card insurance might be a smart financial move. Here are some reasons why:

Protection against fraud:

Credit card insurance can provide coverage for any fraudulent activity on your account, which can save you from being stuck with unexpected charges.

Financial protection:

It typically covers the outstanding balance on the card at the time of the event that triggers the coverage. This means that if the cardholder dies, or loses their job, the insurance will pay off the balance of the card up to a certain limit. 

Emergency medical coverage:

In the event of a medical emergency, while travelling, credit card insurance can provide coverage for emergency medical expenses.

Purchase protection:

Some policies offer coverage for purchases that are lost, stolen or damaged.

Travel benefits:

Credit card insurance can provide benefits such as travel accident insurance, trip cancellation coverage, and emergency medical assistance.

Please note: The coverage limits and exclusions may vary depending on the insurance provider and the type of credit card used so please consult with your credit card company.

In conclusion, credit card insurance can be a valuable tool for protecting oneself against unexpected financial losses. By providing coverage for outstanding balances on the credit card, it can offer peace of mind and help cardholders avoid the negative consequences of falling behind on payments. The specific features and benefits of credit card insurance may vary depending on the provider and type of card, so it is important to carefully review the terms and conditions of any insurance policy before signing up.