Health Insurance forever
Health insurance is critical for everyone. Unlike before, when you had to make payment for your health insurance in cash or via cheque.
insurers nowadays accept credit card payments towards the premiums.
With the widespread use of plastic money, this form of payment is, in fact, becoming more and more popular. But how sensible is it to purchase your health insurance through a credit card? What are the benefits and drawbacks? Let’s find out:
Why pay for health insurance via credit card
The biggest advantage while making your premium payment through credit cards is that your bank balance will not go down immediately. That is, you can delay the outflow of cash from your account. You can also earn points on your credit card for this expense.
If you have taken a substantial health cover, your premiums also will be high. This means that you can earn a higher number of reward points for your purchase. But should you opt for a credit card payment simply because you can delay the cash outflow and earn points? It can be quite disastrous if you are not careful with your credit card.
Additional charges: When you make your purchase through a credit card, you will be charged an extra fee over and above your premium amount. This may either be a percentage of your premium amount or a flat fee. The amount of fee charged varies from one service provider to another. Nevertheless, all credit card payments entail a transaction fee.
This is because the health insurance company will in turn have to pay the credit card company. This extra fee you pay may look like a small amount. But why pay extra when you can opt for other payment methods which do not carry any extra fee?
Missing deadlines: In case of any other credit card payment, if you do not pay your credit card dues on time, you will end up paying a hefty interest rate. In addition to this, you will be charged a late payment fee as well in case of health insurance premium payment. The amount you end up paying extra will be much more than what you think you are saving by opting for this payment mode.
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