Does the way I pay for my insurance affect my premiums?
Does the way I pay for my insurance have any affect on my premiums?
In some sense, yes it does. There is no difference in premiums paid for choosing different payment methods (cash, check, credit card). However, whether you choose to pay your premiums in full upfront or via a monthly payment plan does affects the total premium that you will pay to the insurer (see What Influences Life Insurance Premiums? to find out what else you need to consider).
With a monthly premium payment plan, there are two additional charges you might incur: interest and a one-time setup fee for your payment plan account. The interest paid is typically between 1-2% per annum and the one-time setup fee is typically a nominal fee of $10 to $15.
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Jacques grew up around the insurance industry and began actively participating in 2013. Since then, he has gotten a Level 2 license, won Insurance Council of BC awards in 2015 and 2020 for academic excellence in the insurance licensing courses. He educates insurance professionals through PNC Learning and as a Thought Leader at ReFrame Insurance.
In his day job as an insurance broker, he helps businesses with creative risk management solutions and strategic advice when it comes to insurance.[Read full bio]