One of the major things that hold people back from getting insurance is the fear of not being able to pay the high premiums. Failing to pay premiums on time can result in policy lapse and nobody wants to deal with the hassle that follows.
However, gone are the days you had to miss a premium due to a cash crunch. Now you can just use your credit card to pay your premiums on time. Not only it delays your cash outflow but also earns you reward points.
Getting health cover or insurance better prepares you and your family for any uncertainties. Lack of thereof can exhaust your life’s savings and leave you with inadequate funds for your old age.
The higher the cover, the higher your premium. Keeping up with the rising premiums can sometimes get tough, but fortunately, there’s another way to never miss a premium.
Credit cards don’t just buy you extra time but also earn your reward points. The higher your premiums, the more reward points you earn, which can be redeemed anytime, anywhere especially if you are paying with OneCard.
If you are certain you will have cash flow by the end of the credit cycle, you can set up auto-pay on your credit card. You can do this easily by providing your card details to your insurance provider and the premium amount will get automatically debited on the due date.
If the premium amount is too high and you are unable to pay it off at once, you can easily convert it into EMIs using your credit card. On OneCard, you can do it in the app without much hassle. With OneCard, you can choose a tenure that suits you the best to pay your EMI.
You can claim a deduction of up to Rs 1.5 lakh pa for the premium paid for yourself and your family, under section 80C of the Income-tax Act, 1961. So you can save tax while insuring yourself and your family and also earn reward points by paying the premiums through your credit card.
Additionally, if you pay your premiums online, you can claim a deduction of up to Rs 25,000 for yourself, your spouse, and dependent children under 80D. If your parents are aged above 60, the deduction limit can go up to Rs. 50000.
1. Is there a limit on premiums paid through credit cards?
No, there is no limit as to how much premium can be paid using a credit card as long as your premium is within your approved card limit.
2. Are there any additional fees charged on premiums paid through credit cards?
There is a convenience fee. But as long as you pay your premiums by the end of the credit free period (18-50 days of payment), you don’t have to pay any interest.
If you are looking to get a credit card, Check out OneCard. The reward points on OneCard are credited instantly, can be redeemed anytime, anywhere and they never expire.
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- OneCard , December 22, 2022
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