More and more people
are using credit cards. Either to withdraw money from ATMs, or to pay for
consumer goods and services. However, what many of them do not know is that the
advantages of these plastics go beyond those of paying the amount of a purchase
in a deferred manner. In general, credit cards offer the possibility of
enjoying a series of added services that are included in the product from the
moment of signing. These advantages include a whole series of free linked
insurances that, when the time comes, can be very useful for the user.
Accidents abroad, cancellations and annulments of a trip, or fraudulent
purchases, are some examples of this.
Next, and so that you
get the most out of your credit cards, we are going to tell you what insurance
they can include and what coverage they offer. Go!
How is credit card insurance?
Usually, the insurance
that is included in credit cards does not present an added cost. This is
included in the expenses that the card itself generates. However, the coverage
of each of them will vary depending on the product that has been contracted and
the bank to which it belongs. Thus, the most common cards will have a lower
volume of insurance or coverage. And those that are part of a more exclusive
product will present a greater number of advantages.
However, and
regardless of the type of card contracted, the insurances included in it must
appear reflected in the particular conditions of the contract.
Most common credit card insurance
coverage
As we have told you,
it is not necessary to think that all credit cards offer the same level of
insurance. The differences between one and the other will be established in the
proposal of each financial institution. However, the most common coverage
included in this type of product refers to theft or loss, accidents and travel.
Life or death coverage
This type of coverage
is present in most credit cards, with the cardholder as insured, and with the
main function of protecting the possible credit available on the card balance
in the event of death. In addition, it is also presented as family protection
insurance with higher compensation in some cases. This insurance policy will remain in force
as long as ownership of the card is maintained. In this way, if this person
dies, their relatives receive compensation that is established in the insurance
contract itself.
Coverage and travel insurance
●
Travel coverage: This insurance can be
associated with refunds or bonuses in the event of flight delays or
cancellations, loss or damage to luggage, and/or cancellation of a trip. Of
course, in order to enjoy this type of insurance, it will be necessary for the
credit card to have been used to pay the amount of the trip in question. In
addition, we recommend that, if you are interested in this type of policy, you
also find out about traditional travel insurance. It may be more complete and
useful for your case. Remember that these insurances do not always cover all
unforeseen events that may arise.
● Travel insurance:
These are policies similar to the previous one, and are usually intended to
cover accidents and illnesses of the holder, including spouse and descendants.
They can also cover emergency expenses or medical transfers. In this case, it
is an insurance that generally will have to be added, since by default it is
only found in the highest level credit cards.
Insurance against theft, fraud and
duplicate credit cards
It is another of the
insurances most required by users. Credit cards are one of the banking products
that cause the most fraudulent problems in their daily use. This is why most
entities include insurance related to credit card theft and fraud. This type of
insurance covers charges made to the owner's account without their permission.
As well as the possible cloning of the cards.
Purchase protection insurance
Purchase protection
insurance has been gaining ground in recent years. They cover those
inconveniences that may arise during the purchase of products with a credit
card. For example, a product is charged twice when purchased online. Or that
the order placed never reaches the recipient.
How can I find out what coverage my
credit card includes?
Normally, credit card
users are unaware of most of the insurance or advantages that they offer. In
any case, to find out what coverage your cards include, we recommend that you
pay attention to the contract you are going to sign before contracting them. In
it, the linked insurances (if you have them) and their coverages must be
included.
What does insurance associated with
cards not cover?
As a general rule, card insurance does not include civil liability. Whether due to traffic accidents or other reasons. Neither are accidents that occurred before contracting the card. In addition, those incidents that occurred under the influence of alcohol, drugs or some type of narcotic will also be excluded. As well as the damages caused by suicides or attempts. Or the loss of luggage or cancellation of flights when the trip has not been contracted with the credit card itself.