We get a fair amount of requests from our clients asking if it's possible to pay for their life insurance on a credit card.
In this article we'll cover everything you need to know about buying life insurance on 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. All you need to do is 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:
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:
(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.
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.