Buying Life Insurance on a Credit Card

purchase life insurance on a credit card 2We get a fair amount of requests from our clients asking if it’s possible to pay for their life insurance on a credit card.

This article is going to answer some of the questions about buying life insurance with a credit card.

First of all, can you buy term life insurance on a credit card?

Currently, there’s only 1 company that will allow you to pay monthly on a credit card.  That company is Fidelity Life Insurance.  They are a no medical exam life insurance company and go up to $250,000 of coverage.

Beyond Fidelity, there are no other life insurance companies who will allow you to make ongoing payments on your Visa, Mastercard, American Express or Discover card.

HOWEVER, many life insurance companies will allow you to pay your initial premium payment on a credit card, but future payments must be done via electronic funds transfer from your bank account.

We always encourage our clients to take advantage of this by making your initial premium payment annually by putting it on your credit card because life insurance companies give you a discount for paying annually – usually in the 4%-5% range.

Don’t take our word for it, see for yourself.  Run instant life insurance quotes on our website and we’ll give you the monthly premiums along with the annual premiums. It’s simple, take the monthly premium and multiply it by 12 and you’ll see it’s always more expensive than if you paid annually.

Here’s a quick example:

buy life insurance on a credit card

Many of our clients love the fact that you can pay annually on your credit card just for the fact they can collect reward points on their credit card.  Of course, this only makes sense if you pay your card off in a reasonable amount of time so you don’t pay interest charges.

Most life insurance agents won’t ever bring this option up because it’s not common knowledge within our industry that you can do this.  However, we do this all the time and have researched the companies that accept initial credit card payments.

Here are a list of companies that accept credit cards for the initial payments:

  • American General
  • Banner Life
  • ING
  • North American
  • SBLI
  • Transamerica

(Please note that CC payments for these companies aren’t available in every state.  Please check with us)

We’ll add to this list if any more companies start accepting credit cards for initial life insurance payments.

Bottom Line

If you end up applying for life insurance with one of the carriers listed above, don’t forget about this credit card option. Especially if you’re getting rewards points on your credit card.  You’ll save some money by paying annually.

If you want to make ongoing monthly, quarterly, semi-annual or annual payments by credit card – Fidelity Life is your only option right now.

Again, if there are any changes, we’ll update this article.

About Jeff Root

is the owner of He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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Hey Jeff,
I know it’s been a while since you wrote this. Is Fidelity still the only life ins company that you know of who allows monthly CC payments?

March 28, 2017 at 2:50 am
    Jeff Root

    Yes, they are still accepting credit card payments and are the only ones I know of.

    June 21, 2017 at 10:59 pm

Hi Jeff,
Thank you for the helpful information you have posted. Do you happen to know why most insurance companies don’t allow/accept monthly payments? I am wondering if it is due to legislation/regulation or if it’s just basically a “standard operating procedure” within the industry. Any insight on this will be greatly appreciated!

January 11, 2018 at 7:33 pm
    Jeff Root

    Most companies allow monthly payments via EFT. Writing a check every month (what we call direct bill) is what many companies don’t allow because of the administration costs and dealing with lapses/late payments.

    February 4, 2018 at 8:13 am

AAA Life insurance allows online credit card payments for their ‘no exam’ 250k policy. I don’t know about their traditional term polices.

With cyber security concerns, It is really shocking that insurance companies don’t all take credit card payments. If they get hacked, and someone gets your credit card info, personal monetary risk is limited to $0-$50. If they get your checking/savings info you can lose thousands with no recourse.

Paying a little extra for transaction costs, would be a great trade-off for added security. First major insurer to adopt this gets ALL my business!

April 6, 2018 at 1:26 pm
    Jeff Root

    Hi Colin,

    Credit cards expire and result in higher lapses than other forms of payment – that’s the core reason most carriers don’t allow it. Most allow your initial payment to be on a credit card, but not recurring payments.

    Thanks for the heads up on AAA!

    April 18, 2018 at 11:10 pm
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