It’s smart to pay with a credit card – insurance included in cards is often overlooked

Many people are cautious about paying with a credit card, but should they be? Paying with a credit card is often a sign of a smart spender. If you pay with Nordea Mastercard, you get valuable benefits, such as comprehensive insurance for your travels abroad, Product Safety Insurance and cash withdrawal cover.

Credit card provides protection for your holiday trips and purchases

Almost all of Nordea credit cards include insurance, in addition to an interest-free payment period and an instalment-free period. The prerequisite for the validity of the insurance is that you pay your purchases with the credit facility of your card. 

For instance, a Nordea Gold credit card includes Travel Insurance and Product Safety Insurance if you buy your holiday trip or a sofa, for example, with credit. Paying larger acquisitions with credit is usually sensible in order to be entitled to insurance even if your finances sufficed for cash payments. Thanks to the average 30-day interest-free payment period*, paying with credit will not incur extra costs, and you get protection for your purchases and acquisitions.

*The annual percentage rate of charge calculated on a Nordea Gold Mastercard credit of 1,500 euros is 16.5% (for customers with a service package, November 2020)

Travel Insurance included in your card – peace of mind for your leisure trips and outright savings

Every third Finn has suffered from a stomach disease or the flu during their trips*. Although most of the stomach bugs and flus are reasonably mild, sometimes you still have to see a doctor or even spend some nights at a hospital. Only few people know that a trip paid with the credit facility of their card is automatically covered with travel insurance, so they do not need a separate travel insurance policy. Nordea Gold credit card, for one, includes Travel Insurance, which adds to your piece of mind during your leisure trips.

In fact, paying a trip with a credit card is an excellent means of having your trip abroad insured, instead of getting a separate travel insurance policy. For instance, with a Nordea Gold credit card, Travel Insurance is valid if you have paid at least 75% of the total travel and accommodation costs with the credit facility of your card.

*Research: Suomalaiset eivät tiedä, mitä matkavakuutus korvaaOpens new window

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Examples of possible claims situations*:

*Please note that insurance decisions are case-specific. When damage occurs please contact your insurance company.

Emma

Emma goes on a three-week holiday to Australia with her family. On the third day of their holiday, her 16-year-old daughter Tiia develops high fever and begins to feel sick. They go to a local doctor who diagnoses food poisoning. Due to persistent symptoms, Emma and Tiia have to spend the night at a hospital, where Tiia is on a drip and being monitored. Thanks to the treatment, Tiia recovers quickly and the family is able to resume their holiday. Travel Insurance included in their Nordea credit card will indemnify the medical and hospital expenses.

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Maria ja Mai

Maria and Mai have taken a cultural trip to Barcelona in order to admire the local architecture. After their flight landed, they went to the luggage carousel to wait for their suitcases. However, there is no sign of them. After having inquired about their luggage from an airport clerk, they learn that it has ended up on a wrong flight. The airline promises to deliver their suitcases after two days, but Maria and Mai will have to manage without their luggage until then. Travel Insurance included in their Nordea credit card indemnifies the costs of purchasing necessities for the period during which they had to cope without their luggage.

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Remember to avail of the benefits included in your credit card

Product Safety Insurance included in a Nordea Gold credit card provides additional cover for any products you purchase for your home or holiday home. The insurance covers damaged or broken products worth at least 100 euros in accordance with the insurance terms and conditions. The only requirement is that you have purchased the product with the credit facility of your card.

One of the advantages of Product Safety Insurance is the deductible of only 50 euros, which is low compared to most home insurance options. The insurance will be valid for 180 days from the purchase date.

Some credit cards also include cash withdrawal cover besides travel insurance. It compensates cash funds withdrawn from the Mastercard credit account in a foreign country up to 850 euros if they are stolen from you within 24 hours of the withdrawal.

PriceGuard Insurance guarantees you the best price on the market. Should you find a lower price for a new item within 30 days from the date of purchase using your credit card, PriceGuard Insurance will cover the price difference.

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Examples of possible claims situations*:

*Please note that insurance decisions are case-specific. When damage occurs please contact your insurance company.

Hanna-Leena

Hanna-Leena is a passionate art lover. She visits art exhibitions frequently and also buys art for her home regularly. To celebrate the spring, Hanna-Leena buys a new art glass object she had dreamt about for long. After a week from the purchase, her cat drops the object while chasing a fly. The glass gets broken, and even if the restorer does their best to get it fixed, it cannot be done. Luckily, the situation is not as bad as one would imagine: as Hanna-Leena paid the art glass with the credit facility of her Nordea Gold and Product Safety Insurance indemnifies the damage.

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Mikko

Mikko is a keen gamer who may spend hours a day with computer games. However, his old computer has come to the end of its useful life, and Mikko decides to buy a new high-quality computer for playing. After having compared the various alternatives, he orders a computer from a Finnish online shop. One day while playing, Mikko accidently pours his cup of coffee over his new computer. He dries it immediately, but the computer won’t start. Mikko recalls having bought the computer with his Nordea Gold credit card, which includes Product Safety Insurance. The insurance indemnifies the broken computer, and Mikko is happy to be able to continue playing.

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Mohammed

Mohammed has taken an interest in singing since he was a child. He also spends time with his friends singing karaoke. Mohammed decides to buy karaoke equipment for his holiday home in order to be able to invite his friends over to sing. On the first night after the delivery of the karaoke equipment, one of the guests spills their drink on the equipment. The atmosphere of the party is ruined after it turns out that the equipment won’t start again. The next day, Mohammed takes the equipment for a repair, and the repairman says nothing can be done for it any longer. Fortunately, Mohammed had paid the karaoke equipment with the credit facility of his Nordea Gold, so Product Safety Insurance will indemnify the damage.

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5 tips for making use of card insurance

  1. Buy your holiday trips with the credit facility of your card, and you will save money by getting travel insurance included in your card.
  2. Avail of the 30-day interest-free payment period of your credit card to get more flexibility for your finances.
  3. Pay your larger acquisitions for your home with the credit facility of your card to get Product Safety Insurance for your acquisitions.
  4. Always pay your online purchases with a credit card. The credit card company will then provide you with cover in case your purchases are not delivered and you are not able to agree on the matter with the online shop.
  5. Remember that Product Safety Insurance included in your Nordea Gold card also covers any items you keep inside your holiday home if you have paid for them with the credit facility of your card.