Free Insurance

Free Insurance with Your Credit Card: Get Coverage Up to ₹40 Lakh and Other Hidden Benefits

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Free Insurance
New Delhi: Credit cards are no longer just a tool for shopping or booking tickets — they’ve become an essential part of personal finance, offering a range of free insurance covers that many users are still unaware of. From travel emergencies to accidental death coverage and purchase protection, several credit cards offer insurance benefits that could be worth lakhs of rupees — at no extra cost.

Whether you’re a frequent traveler, a regular shopper, or simply a cardholder seeking added security, understanding these hidden benefits can help you maximize your card’s value and stay protected during unforeseen events.

Travel Insurance: Protection Beyond the Airport

Many credit cards include complimentary travel insurance, which covers expenses related to lost baggage, trip cancellations, or medical emergencies while travelling. For example, if your checked-in luggage goes missing or is delayed beyond a certain time frame, you can file a claim for compensation through your credit card issuer.

This is especially useful for frequent flyers and business travelers, ensuring peace of mind during domestic or international trips.

Accidental Insurance: Up to ₹40 Lakh Coverage

One of the most significant free benefits is accidental insurance coverage, especially for road and aviation accidents. In case of death due to an air accident, certain premium credit cards offer coverage of up to ₹40 lakh. Road accident insurance is also commonly provided, offering financial security to the cardholder’s family in tragic situations.

Many credit cards also waive off outstanding dues on the card in the event of the cardholder’s death, easing the financial burden on family members.

Purchase Protection: Safeguard Your Shopping

Another valuable benefit is purchase protection insurance, which covers damage, theft, or loss of goods purchased using the card — usually within a specified period (typically 30-90 days). Claims can be made for amounts up to ₹50,000, making it an essential cover when buying high-value electronics, smartphones, or appliances.

So, if your newly purchased gadget gets accidentally damaged or stolen soon after purchase, this insurance protects you from financial loss.

Additional Covers Available at Low Premiums

Apart from free coverage, credit cardholders can also opt-in for additional insurance benefits at minimal premiums. These include:

Credit Life Insurance

This covers the entire outstanding bill amount in the event of the cardholder’s death, disability, or long-term illness, ensuring family members don’t face financial distress due to unpaid dues.

Credit Disability Insurance

If the cardholder becomes temporarily or permanently disabled, this cover will pay the minimum amount due on the credit card each month for a set period. However, it doesn’t cover transactions made after the disability event.

Unemployment Insurance

In case of sudden job loss, this plan helps manage credit card repayments by covering the minimum due amount during the unemployment period. Like disability insurance, it doesn’t apply to purchases made after the loss of employment.

Why You Should Take Advantage

These credit card-linked insurance covers often come free of cost or at a very nominal fee, and can save users thousands — even lakhs — during emergencies. Yet many cardholders are unaware of these benefits and miss out on using them when needed most. It is advisable to read the terms and conditions of your credit card or contact your bank to check what insurance benefits are included with your card.

By understanding and leveraging these protections, credit card users can go beyond transactions and tap into a layer of financial security that is often hidden in plain sight.

Author Profile

Kuldeep Singh Chundawat
Kuldeep Singh Chundawat
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.