Once you have decided to purchase the insurance policy, there are many ways you can pay the premium for an online insurance policy. The two main methods of premium payments are the annual payments and monthly payment.

Annual Payment of premium-

As the name suggests, annual payment means that you have to make a single payment once a year. The main advantage is that when you choose to pay annually, the rate of interest is slightly lower than that for monthly premium. Moreover it is a once year payment and there are less hassles than running around to pay the premium every month. But you will have to cater for a high amount every year at the same time for the premium payment.

Monthly Payment of premium-

If you choose the option of paying monthly premium, the fee will have to be paid on the same day of every month failing which you pay penalty. The advantage is that you will be paying a smaller amount every month as opposed to one major payment every year. But usually the interest rate is higher for monthly payments and finally you will be paying a higher amount than you would do for yearly payment.

Through Credit Cards

Your credit card can be used for monthly or yearly premium payments. The main advantage as any other credit card transaction is it is not necessary to have ready cash in hand. The payment can be made to the credit card company can be made at a later time. But you will not be able to make the payment if the premium is more than the allowable limit on your card or if you have already used the maximum credit on the card. If this happens, then you will incur late payment charges from the insurance company.

Paying through direct debit cards

You can also pay for your online insurance through your debit card. The only disadvantage is that you will need to have enough balance in your debit card account which will be sufficient to make the premium payment. If this is not the case then you could attract late fee charges from the insurance company.

Payments through cheque-

The most common method of making online payments is by cheque. You can make the payment by providing the account details and cheque number. But here you have to be absolutely sure that there is enough balance in the account lest you incur not only late fee charges but also charges from the bank for cheque bouncing.

Making cash payment

If you are a very conventional type of person, then making cash payments is the best way for you. If you the money for making the payment, and the time at your disposal, then there is nothing else to consider.

Life Insurance is an agreement between the insurance company and you. The company will pay amount at the time of need provided the premiums have been paid on time. With so many modes of payments, there is no reason why one should default in making the payments. So make timely payments and enjoy all the benefits of the policy