Many people would like to pay their life and disability insurance premiums by credit card for ease of payment or to accumulate points. Is this possible?

The traditional disability insurance companies–Guardian, Principal, MassMutual, Ameritas and Standard do not allow you to pay your disability insurance premiums by credit card. These must be paid through a bank account. We recommend setting up a draft either monthly or annually to avoid missing a payment causing a lapse.

Right now, Lloyds of London, a non-traditional disability insurance company, allows credit card payments.

Many life insurance companies allow you to pay your premiums by credit card, but it depends on the insurer and the type of policy. Some companies accept credit card payments for the initial premium but may require future payments to be made via bank transfer, check, or automatic withdrawal from a bank account.

If you’re interested in earning credit card rewards or points, check with your insurer to confirm their payment options and whether any fees apply. Some insurers charge a processing fee for credit card payments, which could offset any potential rewards.

Regardless if you pay by check or credit card, it is important to ensure you are paying from a personal account and are not deducting the premiums. If you pay your premiums from a personal account, the benefits are paid to you tax free at the time of claim.

For more information, contact Set for Life Insurance today!