Credit cards have become a financial tool that most people carry with them everywhere and use to make purchases they wouldn't be able to make with cash. In addition to points for purchases, airline miles, and cash back, credit cards have other benefits that not many people know about. This is the insurance that comes with credit cards. You should know that the annual fee for this type of card already covers most of these perks.
How does credit card insurance help?
If you don't have an idea of what type of insurance or coverage might work best for you, you can go by your age group:
20 to 30 years old: They prefer to give priority to Car Insurance to protect their patrimony.
30 to 40 years old: They invest in Medical Insurance to protect themselves against unexpected illnesses or accidents.
40 to 50 years old: The idea of protecting family members in case of premature death makes them invest in Life Insurance.
What are the insurance coverages provided by my credit card?
The coverage plan will depend on the type of card you have and the bank that gives it to you. Here are some insurance policies you may have on the credit card that you probably didn't know about.
Forgiveness of debit balances
Debit balances are forgiven up until the date the cardholder who holds the account dies.
Travel accident insurance
When you use your card to buy airline or bus tickets from a company on your card's list of approved transportation companies, you will be covered in case you die or lose a body part in an accident.
Protection against theft, loss, and cloning
Covers the money that was lost because credit cards were used fraudulently because they were lost, stolen, forged, or changed.
Luggage loss insurance
Protects your things if they get lost or held up on the way to your destination. Like Travel Accident Insurance, this only works if you bought your tickets with a credit card.
Protection against robbery and ATM robbery
Replacement of money lost during a robbery while performing an ATM transaction.
Rental car insurance
Covers damage to the rental car if it gets into an accident or is stolen in the U.S. or Canada. It doesn't pay for your medical bills or other people's injuries. For this coverage to work, the rental car must also be paid for with a credit card.
Emergency insurance when traveling abroad
Protects against injury or illness during a trip. Coverage applies to the cardholder, spouse, and children under 23 years of age.
How do I find out what insurance I have on my credit card?
You can check to see if these benefits exist by calling your bank and asking what kind of insurance and coverage you have. You can also look in your credit card contract for this information.
Don't forget that most insurance policies are included in the annual fee you pay for your credit card, so it's helpful to know which ones can protect you and what they cover and what they don't cover. If you need to, don't be afraid to use the insurance on your credit card.