31 Jan

What Is Credit Card Insurance?

As it is with all types of insurances which insure you against dire happenings credit card insurance covers you for financial losses incurred should your credit card be lost or stolen and used fraudulently. This has given rise to identity fraud which has become a racket in the USA and the rest of the world.

The cost of a credit card insurance policy differs between the many insurance companies on the market and is determined by the extent of the cover offered. All your credit, debit and store cards can be insured for a small annual premium which should be approximately between $15 and $20. Added benefits include the replacing of tickets, retrieving luggage, providing cash during an emergency and offer service when you have lost your key.

However, possessing a card also has a certain degree of risks and benefits. With the rising incidents of fraud, interest rates, and uncertain economic conditions, it has now become difficult for an average consumer to repay the credit card amount at the end of the month. In such a scenario, going for credit card insurance will be much more beneficial as it can shield you from any financial crisis that may take place in the future.

Many people may be unfamiliar with this type of insurance. Credit card insurance is mainly an insurance policy that insures you for a certain sum of money if you fail to pay off the credit debts due to certain events such as high-interest rates, fraud, job loss, illness, disability or death.

Credit card insurance is generally offered by your credit card company, and it is not a very difficult task to get this type of insurance if you have a good credit history. Before, taking insurance, you must ensure that the company must be reputable and reliable when it comes to settling claims fairly and promptly.

If you have made up your mind to take a credit insurance policy, then it is important that you are well-informed about the latest trends and company policies before signing the dotted line. The insurance schemes are customized according to the needs and requirements of the individuals, and it is better to choose the best scheme that does not put any unnecessary financial burden.

Credit insurance provides a lot of advantages as it not only protects you from missing payments but also helps in securing a good credit score. Therefore, if you want to prevent yourself from potential financial ruin as well as the credit history from getting tarnished forever, then shelling out a bit extra money for buying a credit insurance plan can certainly prove to be worth the investment.

If you are keen on applying for credit card insurance cover, do check the contents of the credit card insurance policy cover first. Study the terms and conditions carefully to make sure that you are insured for what you, in your opinion, believe you are covered for. This is a sure way of making certain that you will not receive any nasty surprises if and when, you do make a claim. Also, check the small print of the credit card insurance policy for exact details.

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