In today’s fast-paced world, having insurance is a necessity. Paying your annual insurance premium can become cumbersome if you spend from your pocket. This is when having a credit card comes in handy. The use of credit cards goes beyond shopping and collecting travel points. If used strategically, credit cards can be your biggest financial ally. Paying insurance with credit cards can be rewarding, literally. This article will give you a complete lowdown on how you can make insurance premium payments through credit cards and provide a list of some of the top credit cards with benefits.
Why Use Credit Cards for Insurance Payments?
This is the first question that pops up in anyone’s mind when they hear about insurance payments with credit cards. And it is a valid question. Mindful usage of credit cards can help you maintain a steady cash flow and help improve your credit score. Some of the benefits of using credit cards for insurance payments are listed below.
Timely payments
One can set up an auto-payment schedule on a credit card by informing the respective card provider. Automatic payments ensure seamless insurance payment, thus leaving little room for payment delays.
Building a healthy payment history
If you are looking to build up your credit score, using your credit card for insurance payments might help. Regular use of credit cards and regular repayments represent responsible financial behaviour. This can have a positive impact on your CIBIL score.
Convenience
When you set up an automatic payment schedule, it is convenient for you to keep track of your payments. Besides, credit card payments are possible with a single tap from your banking app. This eliminates the need to approach insurance officials for help.
Security
Online credit card payments authorised by you are secure. Credit cards typically offer robust fraud protection, ensuring that your payment information is secure. If unauthorized transactions occur, you can dispute them and recover your funds more easily than with other payment methods
Improved Cash Flow
Credit cards allow you to defer payment till the end of your billing cycle, hence allowing you to save enough to repay your credit card later. This ensures a steady presence of money in your account without burning a hole in your pocket.
Access to Additional benefits
Apart from the above factors, a few credit card providers reward borrowers who use them for miscellaneous purposes like utility bill payments and insurance payments. Following is a list of some of the providers that provide credit card points for insurance payment, along with other benefits.
Top Credit Cards for Insurance Payments
There are several credit card providers offering a range of benefits to borrowers for using their credit card for insurance payment. The benefits range from getting a 5% cashback for miscellaneous credit card payments to paying your bills through credit card registered on your UPI app. Let’s take a look at the top credit cards and their benefits.
The Tata Neu HDFC Bank Infinity Credit Card
We love this credit card because of the myriad benefits it offers for using their credit card to pay across numerous Tata platforms, which are connected to most major insurance companies. This credit card comes in two variants – Tata Neu Plus and Tata Neu Infinity. Although there is little difference between the two in terms of benefits, the benefits of using these cards for insurance payments are better than most cards in the market.
Benefits
- Earn upto 5% Neu coins on using your HDFC bank Tata Neu credit card for various spends across Tata platforms – both e-commerce and grocery apps, and UPI transactions.
- No joining fees
- 4 complimentary lounge access at international airports and 8 domestic airport lounges a year.
- 1% fuel surcharge waiver.
HDFC Bank Regalia Credit Card
The best feature about this credit card is that it lets you convert your insurance payments into smart EMIs at low interest rates. This comes as a relief especially when you have to pay huge sums as insurance premium. You can also earn credit rewards for insurance premium payments. Some other benefits of this card are listed below:
Benefits
- 12 complimentary lounge access across airports within India – both international and domestic terminals.
- Complimentary Swiggy One and Make My Trip Black memberships as welcome benefits.
- Convert your insurance payment into SmartEMI at affordable interest rates.
- Additional insurance and other benefits.
SBI Card Elite Credit Card
This is another best credit card for insurance payment. You can earn credit card rewards for insurance payments if you achieve their spending expectations.You can convert your insurance payments into EMIs of affordable interest rates. A few other benefits of this card are listed below.
Benefits and features:
- Joining fee INR 4900 + taxes
- Annual renewal fee INR 4900 + taxes.
- Gain credit card points for insurance payments
- Complimentary access to domestic and international airport lounges.
ICICI Bank Platinum Credit Card
The ICICI Bank platinum credit card can be used to pay utility bills and insurance premiums. You will be eligible for rewards as long as you spend the maximum limit specified in their policies. You can use this ICICI bank credit card for life insurance premiums. Other benefits include fuel surcharge waivers, travel points on flight bookings and ICICI bank reward points for gifts and vouchers for shopping multiple brands.
Axis Bank Ace Credit Card
This credit card is a cashback credit card for insurance bills. You can earn credit card points for insurance payments. The other cashback benefits are similar to the ones offered by other credit card providers.
How do you maximise rewards by making insurance payments through credit cards?
Here are a few ways to maximise your credit card reward offers while paying your insurance premium.
Choose the right credit card
Rewards and Cashback: Read your credit card rewards terms and conditions carefully before selecting one. Look out for cards with special offers for insurance payments. For example, the HDFC Bank Regalia Credit Card allows you to convert your insurance payments into monthly instalments at lower interests which can be a boon if you are not able to pay your premium in bulk, besides, it offers 4 reward points for every 150 Rs. spent.
Special offers:
Keep an eye out for promotional offers from your credit card issuer that may provide bonus points or cashback on insurance payments
Monitor and Redeem Rewards
Track Your Spending: Regularly check your credit card statements to monitor your expenses and ensure you are earning rewards on all eligible transactions.
Redeem Before Expiry: Be aware of any expiration dates on your reward points and redeem them proactively to avoid losing potential benefits.
Conclusion
The best part about owning a credit card is that you can manage heavy expenditures without impacting your savings. When used mindfully, they can be an asset. Although no specific credit card offers rewards specifically for insurance payments, paying your premium can help you achieve the spending cap required to avail of other financial benefits offered by your card.
The best way to maximise your credit card rewards is to be well-informed about them and redeem them before expiry. A way to ensure responsible spending behaviour is to set apart a certain percentage of your money to pay credit card bills so you don’t burn a hole in your wallet.
Regular transactions on credit cards can reap many benefits, a few of which have been listed above. Finally, remember that credit cards allow you to borrow huge amounts of money for a short period hence, it is also a type of loan. Repaying credit card bills on time shows lenders that you have reliable spending habits which can be an advantage while applying for loans in the future. So build a good credit history and spend mindfully.
