Within the past few years, life insurance companies have begun accepting credit cards as a method of payment for term life insurance premiums. Several companies in the QuickQuote marketplace now accept credit cards, although some state restrictions do apply. The following table lists these exceptions.
|Life Insurance Company||States Not Approved for Credit Cards|
|American General Life||NJ, NY|
|Banner Life Insurance Company||AK, CA, MD, NC, NJ|
|Genworth Life Insurance Company||AK, CA, MD, NC, NJ, NY, PA|
|Mutual of Omaha Life Insurance Company||AK, CA, MD, NC, NJ, NY, PA|
|ReliaStar Life Insurance Company||MD, NC, NY|
|The Savings Bank Life Insurance Company of MA||All States Approved|
|Transamerica Life Insurance Company||FL, VT|
Credit cards are only accepted for the initial premium on the policy. This is the premium you pay when you first take out the policy and put the coverage in force. Renewal premiums do not qualify for credit card payments. For example, if you purchase a 10-year term life insurance policy and pay the initial annual premium payment with a credit card, your renewal premium will be due twelve months later. That renewal premium will have to be paid either by direct withdrawal from a checking account or a check to the life insurance company.
The reason life insurance companies limit the credit card payment to the initial premium only is due to the costs associated with accepting credit cards, such as credit card company fees, merchant account, and processing fees.
Using credit cards for the initial payment on a new term life insurance company does have its advantages:
- The policy can be put in force sooner. A simple Credit Card Authorization form is used, rather than physically mailing a check to QuickQuote.
- You may be able to secure temporary life insurance coverage while the application is being reviewed if you submit the Credit Card Authorization with your application.
A QuickQuote licensed Insurance Professional can help determine whether credit card payment is an option for you!