Credit cards, a form of plastic currency are revolutionary financial products being used ever since they were introduced in the 1950s and have become an essential part of our lives. They have not only made payments quicker and easier but have also given us several advantages, including reward points which can be converted into cash to avail discounts or reduction in the prices. While credit cards can be used for several such things, most people are unaware they can also be used for paying LIC or life insurance premiums online.
Pay Your LIC Premiums Online Using Your Credit Cards
Buying insurance is much in trend today as opposed to a few years back. And some factors which influence this scenario include volatile markets and economic instability. Not to mention life insurance also helps secure the policyholder as well as his or her family’s financial future from various mishaps. It may also be worth mentioning that there are different ways in which you can pay your LIC premium online, including internet banking, auto-debit and via debit cards as well as credit cards.
Most people today would prefer paying their LIC premiums using their credit cards as it has become a popular way of making payments. Making LIC payment online through a credit card comes with its own set of advantages and disadvantages. But before we go into them, let’s first look at how to pay your LIC premium online using your credit cards.
Paying through credit cards can be convenient. All the cardholder must do is enter his or her card details and the payment would be auto-debited. Additionally, there’s also an auto-debit payment option provided by most insurers or insurance companies which would auto-debit LIC payment online through credit card. This option is also convenient for cardholders or policyholders as they don’t have to worry about their monthly premium payments.
Advantages Of Paying LIC Premiums Through Credit Cards
One of the biggest advantages of paying your LIC premiums using your credit card is your bank balance won’t be deducted at the time of the payment. This delays the flow of cash, which means you can manage your finances easily by paying your credit card bills at a later date in the month. Also, if you are unable to pay your bills immediately, it shouldn’t be a problem. The bank will give you enough time to pay your credit card bills.
One of the other biggest advantages of paying your LIC insurance premiums using your credit cards is they gather rewards and perks, each time you use them. So, every time you pay your insurance premiums, you will gather some reward points which can then be availed for different purposes.
Disadvantages Of Paying LIC Premiums Through Credit Cards
While there are many advantages of paying your LIC premiums using your credit cards, the method doesn’t come without its own set of disadvantages. Among them, one of the major disadvantages of LIC payment online through credit cards is the additional fee that’s charged on the premium by the bank or the credit card company. Now, this additional fee may seem nominal at the beginning, but will add up to become a huge sum of money after a couple of payments has been made. Thus, the amount that adds up as an extra feewill be higher than usual.
Other Methods Of Paying LIC Premiums
Although LIC payment online through credit cards has its benefits to boast, there are other ways in which a policyholder can pay his or her premiums. Some of these methods include paying through cash, chequeor via Demand Drafts at the cash counter in any of the LIC branch offices, while others include paying through ECS, while still others include paying via EBPP or through an ATM. All these methods come with their own set of advantages and disadvantages over others and not one method can be truly regarded as the best of the lot. Also, most of these payment methods aren’t supported by many banks, which means it all depends on which of these payment methods your bank supports.
Thus, there are both advantages and disadvantages of LIC payment online through credit card just as there are with any of the other insurance products and services. But that doesn’t stop it from being the most convenient method. It’s fast, secure,and highly reliable. You also get rewards and other benefits for paying your LIC premiums using your credit card, just as you do when you purchase any other product or service. So, paying the premium of your life insurance policy using your credit card is certainly easy and safe. However, do be wary of various credit card frauds that occur when you use your card for online transactions.
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