How does One Pay for an Insurance Policy Premium through a Credit Card?

The importance of insurance in this era of rising medical and living costs is undeniable. However, if you miss the payment for an insurance premium your valuable policy gets discontinued. So what should you do when you need to pay the premium but don’t have enough money in your bank account for that? Well, you can simply use your Credit Card to pay the premium.

Why opt for online premium payment through Credit Cards?

The main reason why you should pay your insurance premium through a Credit Card is to make sure that the bank balance does not decrease right away. Maybe your bank account does not have enough cash at the moment, but it will soon receive the necessary amount. After all the premiums are going to be pretty high if your insurance cover is on the higher side.

So, for the time being simply delay the cash outflow from the account by paying through Credit Cards. You can pay the Credit Card bill later with the amount that you eventually receive in your bank account.

Besides, as you might have noted while going through your Credit Card eligibility and features, you earn points with every payment you make using your Credit Card. The points you earn are directly proportional to the amount you spend. So, if you are paying a higher amount, you will earn more points.

How should you use your Credit Card to pay the insurance premium?

Using your Credit Card to pay the insurance premium is a lot like paying through any other method. You will simply go to the payments page online for your insurance premium and choose a Credit Card as an option. Then, enter your card details and make your payment.

The only difference between this method and all others is that in this case the amount is not immediately deducted from your bank account.

Pitfalls to avoid when making insurance payments through Credit Cards.

It is important to acknowledge that paying for insurance premiums through Credit Cards is tricky as well. Surely, you can delay payment outflow and earn points. But, if you are not careful enough, you can end up making mistakes like this:

• Premium deductions on the auto mode -

If you set the premium deductions on an auto mode for your Credit Card, the money will be deducted every month, regardless of whether you want it or not. So, check and make sure that your premiums are not set on auto mode for your Credit Card. After all, a Credit Card payment is debt at the end of the day. And you wouldn’t want to accumulate debt if you have sufficient money in your bank account.

• Check the additional charges -

Your insurer might charge you additionally for making payments through your Credit Card, though not every insurer does this. It varies from one insurer and insurance policy to another. So, check if there are additional charges being levied. Avoid making premium payments too often using your Credit Card if the charges seem exorbitant.

• Do not miss deadlines -

You paid your insurance premium on time using your Credit Card but missed the deadline on Credit Card payments. So, now you have the additional burden insurance premium along with your Credit Card dues. As mentioned before, letting the debts pile on is never a good idea. Thus, be punctual in paying your Credit Card dues.

The endnote

ICICI Bank makes it easier to pay your insurance premium using Credit Cards. Now, you will not have to worry about missing a deadline on paying your premium. For more information, contact the bank right away.

FAQs

What is a supplementary or add-on Credit Card?

A supplementary Credit Card, also known as an add-on Credit Card is an additional Credit Card linked to the primary cardholder's account. It allows family members or trusted individuals to make transactions using the primary cardholder's credit limit.

Do supplementary cards affect credit scores?

Regardless of the type of Credit Card you use, there will always be an impact on your credit score. Therefore, supplementary cards do impact the credit score of the primary or supplementary cardholders. So, instructing the supplementary Credit Card customer to use it wisely is important. 

What is the limit of add-on Credit Cards?

The credit limit for add-on Credit Cards is shared with the primary card. The primary cardholder sets the limit and can monitor the spending on supplementary cards. This means that the limit of add-on Credit Cards can vary depending on the primary user’s choice. 

How can a supplementary cardholder make transactions?​

A supplementary cardholder can make transactions using the primary cardholder's credit limit. The primary cardholder manages and oversees the usage including setting transaction limits and monitoring spending. 

Who needs a supplementary Credit Card?​

Supplementary Credit Cards are helpful for family members such as spouses or children who can benefit from sharing the credit limit and enjoy the convenience of card payments even without the presence of the primary cardholder.