The Best Credit Cards You Can Use To Pay Your Insurance Premiums In Singapore
Paying for your insurance premiums directly from bank account is all fine and dandy, and this is what many people do but what if you could hit two birds with one stone? Paying your insurance premiums through a credit card will allow you the flexibility of easy payments while at the same time allowing you to build up your credit score.
Some credit card companies offer rewards to credit cardholders when they use them, especially to pay their insurance premiums. This is provided as an incentive to encourage people to use credit cards. Meanwhile, insurance policyholders may not get to enjoy the benefits of the cover, especially if it is term life insurance coverage. Paying their insurance premiums may, however, allow them to enjoy some of the incentives that are attached to the use of the credit cards.
Identify the credit card companies that reward insurance premium payments
If you want to take advantage of credit card rewards while paying your insurance premiums using credit cards, then the first thing you should do is to identify the card companies that offer rewards. Insurance premiums are not commonly included in reward programs such as air miles and cashback. It is thus important to identify the credit cards that will offer some incentives for paying insurance premiums.
You must, therefore, do some due diligence when looking for credit card companies that allow you to make insurance premium payments through credit cards. The easiest approach involves reading the terms and conditions section of your bank’s information section, especially the part relating to the benefits that credit cards offer. You can also get this information by searching the credit card terms and conditions segment of the company’s website.
Companies usually put up a list of the benefits not included in their miles and cashback rewards. You should be able to find out whether insurance payment benefits are supported or not. Below are some of the credit cards that offer benefits to customers who use them to pay their insurance premiums.
The UOB One Card takes the top spot as the cards that offer the highest insurance payments cashback. Users receive as much as 5% cashback on payments made using the UOB One cards, and this includes insurance premium payments. There is, however, a caveat. This credit card and its benefits are only available to cardholders that earn more than $30,000. Anything below that means that you will likely not be able to reach the maximum 5% cashback tier consistently.
Individuals that want to tap into the top cashback tier of the UOB One card will have to spend at least $2,000 every month for every three-month or quarterly duration. If you do not hit the minimum spending requirement for one month, then you end up losing the potential cashback for a particular quarterly period. This card is perfect for individuals that transact a minimum of $2,000 every month per quarter. However, it does not offer much sense for individuals that do not spend much.
UOB recognizes that not everyone spends that much every month, and so many people miss out on cashback opportunities. However, it offers a remedy for that through a discount program called the UOB SMART$ Rebate Programme. This program allows the cardholder to access additional discounts when they make payments. Some of the merchants that offer these rebates include cinemas such as Cathay Cineplexes, and retail outlets like Jasons, among others.
The Amex KrisFlyer Ascend Card is also ideal for insurance premium payments because it offers high earn rates for air miles. This card is particularly an interesting deal because users receive 5,000 miles for the first transaction completed through the KrisFlyer card. Customers will also be awarded 15,000 extra miles if they spend an extra $6,000 within the first three months. They will also be gifted another 15,000 miles if they spend an extra $6,000 within the second quarterly period.
The high transaction requirement combined with the high significant miles reward makes the Amex KrisFlyer Ascend card an ideal option for individuals that spend a lot on insurance. It is also ideal for individuals that travel often. Anyone whose insurance coverage premiums amount to more than $6,000 can be rewarded with as much as 27,200 miles.
The American Express True Cashback card– This is yet another honorable mention as far as insurance cashbacks are concerned. American Express is a popular brand, and so it is trusted in the market. Holders of this card enjoy a 1.5% insurance cashback rate, and it also offers additional value by providing a 2.5% cashback to cardholders when they spend on foreign currency.
Cardholders can also enjoy a 3% cashback on every $5,000 that they spend within a six-month duration. The card and its benefits are only offered to individuals whose minimum annual income is $30,000. Some of the benefits offered by this card include free travel insurance perks whose ceiling is $350,000. Cardholders also receive fast cashbacks, usually within the same month as their purchases.
The HSBC Advance card- This credit card offers a 2.5% cashback to cardholders. Only individuals whose annual income is $30,000 and above are eligible for this card. First-time customers are rewarded with a $150 cashback as a welcome gift. However, one has to spend at least $800 within the first month after they receive the credit card. However, this offer or promotion will be scrapped at the end of 2019.
Motorists also get to enjoy discounts as high as 16% on petrol at Shell and Caltex fuel stations. Advance banking customers also receive a 1% cashback.
Mayback Horizon offers a 0.3% cashback insurance, and clients are also rewarded with 0.4 miles for every dollar they spend through the card. The minimum annual revenue requirement for this credit card is $30,000. Some of the other benefits unlocked by this card include access to VIP lounges at various airports.
These are just some of the top credit cards that anyone looking to acquire a credit card may consider, especially if they wish to use the card to pay their insurance premiums.