Have you ever been worried about what may happen if you lose your credit card or break the phone you purchased with it? Or what happens if, after a few days, the price of the item you bought with your credit card decreases? Or perhaps when using your credit card while abroad, you may become sick or have an accident.
These are a few conditions in which having a credit card with insurance benefits might be useful. You can be protected against a variety of risks and losses related to the use of your credit cards with credit card insurance. You may do it to save money, stay out of trouble, and have peace of mind.
But not all credit cards offer the same level of insurance benefits. Some may have more comprehensive and generous coverage than others. Some may have more exclusions and limitations than others. And some may charge more fees and premiums than others.
So, how do you choose the best credit card with insurance benefits for yourself? Well, that's what this blog post is all about. We will help you understand the different types of credit card insurance, compare the best credit cards with insurance benefits in India, and give you some tips on how to use them wisely.
Types of Credit Card Insurance
Credit card insurance can be broadly classified into four categories:
1. Credit Card Cover
This type of insurance covers your credit card debt in case of death, disability, or unemployment. You can safeguard your family from monetary difficulties and prevent yourself from going into debt. This credit card cover is often an additional charge and is optional.
2. Insurance Credit Cards
These credit cards have free insurance advantages as one of their features. These perks might include protections against price drops, theft, purchase protection, travel and health insurance, among others.
Insurance credit cards are usually premium or co-branded cards with high annual fees and eligibility criteria.
3. Credit Shield Insurance
You are protected by this sort of insurance from unauthorised or fraudulent credit card transactions. With this insurance, you can avoid paying charges for transactions that you neither authorised nor made. Credit shield insurance is usually free or nominal and comes as a default feature on most credit cards.
4. Credit Card Price Protection
This sort of insurance reimburses you for the price difference if the item you paid for with your credit card becomes less expensive within a predetermined time frame. It can assist you in making financial savings and preventing purchasing regret. Price protection on credit cards is often a unique and exclusive feature of particular credit cards.
Best Credit Cards with Insurance Benefits in India
Now that you know the types of credit card insurance, let's look at some of the best credit cards with insurance benefits in India. We have selected these cards based on their coverage, features, fees, rewards, and customer reviews.
1. HDFC Bank Infinia Metal Edition Credit Card
HDFC Bank Infinia Metal Edition Credit Card is a super-premium card that offers comprehensive travel insurance, purchase protection, price drop protection, and credit shield insurance. It also offers unlimited free access to over 1000+ domestic and international airport lounges, and you also get to enjoy unlimited complimentary golf games at leading courses across India and at selected courses across the world, dining discounts, annual memberships of various online platforms, and reward points that can be redeemed for air miles, hotel bookings, gift vouchers, or cash back.
The card charges a low foreign currency markup fee of 2% on all foreign currency transactions. The card has an annual fee of ₹2,500 (waived off on spending ₹3 lakhs in a year) and an interest rate of 23.88% per annum.
And you must note that HDFC Bank Infinia Credit Card is an invite-only card, i.e., you can apply for this card only if you have been invited.
2. Club Vistara IDFC FIRST Bank Credit Card
Club Vistara IDFC FIRST Bank Credit Card is a premium co-branded card that promises exciting travel and lifestyle-related offers to cardholders. The card offers a complimentary Vistara Silver membership, which offers perks such as priority check-in and increased baggage allowance.
The card also offers up to five premium economy ticket vouchers on achieving spending milestones in a year, access to domestic airport spa and lounge and international airport lounge, flight and hotel cancellation insurance up to ₹10,000 for two cancellations per year, travel insurance cover up to ₹1 crore for air accidents and other contingencies, and up to twelve golf lessons and four golf rounds per calendar year powered by MasterCard.
The card has an annual fee of ₹4,999 and an interest rate of 42.00% per annum. And, to get this card, you must be at least 21 years old and should have a minimum annual income of ₹3 lakhs.
3. Tata Neu Infinity HDFC Bank Credit Card
Tata Neu Infinity HDFC Bank Credit Card is a co-branded card that offers 5% rewards on purchases made at Tata Neu and partner brands and 1.5% rewards on all other eligible spends. The card also offers travel insurance cover up to ₹1 crore for air accidents, emergency overseas hospitalisation of up to ₹15 lakhs, lost card liability cover of up to ₹9 lakh, a 1% fuel surcharge waiver at all fuel stations across India on transactions between ₹400 and ₹5,000, and you also get 8 complimentary domestic lounge access per calendar year (2 in a quarter).
This card has an annual fee of ₹1,499 and an interest rate of 41.88% per annum. And if you are applying for this card, then your age must be between 21 and 65 years.
Also, if you are a salaried employee, then your monthly income should be at least ₹1 lakh. And, if you are self-employed, then your ITR should be at least ₹12 lakhs per annum.
4. Standard Chartered Ultimate Credit Card
Standard Chartered Ultimate Credit Card is a premium card that offers high cashback and benefits on various categories such as travel and rewards. The card offers 5% cashback on duty-free spending and access to over 1000 airport lounges across the world. The card also offers travel insurance covering up to ₹1 crore for air accidents and medical insurance worth USD 12,500. Moreover, for every ₹150 spent, you get five reward points, where one reward point is equal to ₹1 to maximise benefits. Additionally, you can enjoy a reduced foreign currency markup fee of 2% on all foreign currency transactions.
The card has an annual fee of ₹5,000 and an interest rate of 45.00% per annum.
And if you are applying for this card, then your age must be between 21 and 65 years. Also, you should have a stable monthly income.
Tips to Use Credit Cards with Insurance Benefits Wisely
Credit cards with insurance benefits can be very useful and valuable if you use them wisely. Here are some tips to help you make the most of your credit card insurance:
- Before applying for a credit card with insurance benefits, thoroughly read the terms and conditions. Understand the insurance company's coverage, exclusions, restrictions, costs, premiums, claims procedure, and customer service.
- Select a credit card with insurance benefits based on your spending preferences and needs. For instance, choose a credit card with travel insurance if you regularly travel; choose a credit card with price drop protection if you frequently buy online; choose a credit card with credit card cover if you wish to safeguard your family from debt; and so on.
- In order to prevent interest charges and late penalties that might reduce the value of your insurance benefits, pay your credit card bills on time and in full each month.
- Always keep your credit card safe and secure. Inform your card issuer and the insurance provider right away if your card is lost or stolen. Follow the instructions given by them to file a claim and submit the required
- Before applying for a credit card with insurance benefits, compare the available options. You can use the online platform offered by Select by Finology to find, compare, and apply for the best credit card for you.
In conclusion, credit cards with insurance features can provide a valuable layer of protection for your financial transactions while offering additional benefits and savings. However, it's important to choose a credit card that offers coverage that aligns with your specific needs and budget, as the degree of coverage, fees, and charges can vary widely between cards.
To help you get started, we have provided a list of the best credit cards with insurance benefits. Additionally, if you're interested in other credit card privileges, you can find and compare cards at Select by Finology.