If you adore credit card rewards as much as I do, then you will certainly find joy in figuring out the best way to pay your insurance premium. After all, these are fixed expenses in your life. For that reason, I reckon that we should strive to maximise the credit card rewards that we can get for these types of transactions. With this purpose in mind, let’s discover six popular ways to pay insurance premium and earn credit card rewards at the same time.

Table of Contents:

1. Problem with paying Insurance Premium
2. ipaymy
3. CardUp
4. AXS m-Station
5. Citi PayAll
6. SC EasyBill
7. Maybank’s Credit Card
8. Final Thoughts

Disclosure: This post on Best Way to pay Insurance Premium contains a referral code. Hence, I may get some money for coffee when you use my referral code to sign up for their services. But nope, there is no additional cost to you. In fact you will get a $30 referral bonus too! In any case, I will only recommend products or services that meet my needs and expectations.

One Minute Summary:

• Generally, most credit cards do not give any credit card rewards for payments made to an insurance company.
• Consequently, if you insist on earning credit card rewards, then you will need to rely on a third-party platform to make these payments.
• However, most of these platforms charge a one-time processing fee of between 1.9% to 2.6%.
• Of course, there are also options where you do not have to pay a processing fee to pay your insurance premium.

Part 1: Problem with Paying Insurance Premium

To begin with, let’s understand two problems that you may face when you pay insurance premium. Firstly, this is a fixed expense that you need to pay over a pre-defined period (usually in the long term). As a result, it decreases your net cash flow for other usage. Secondly, if you adore credit card rewards in the same way as I do, then you will soon realise that most credit cards do not give any rewards for these transactions. In general, they fall under the category of Insurance Sales, Underwriting and Premium (MCC 6300). To put it another way, you are not able to optimise the dollar value of your spending. Based on the presented problems, there are six common solutions to that end.

Part 2: ipaymy

Part 2.1: About ipaymy

Founded in 2016, ipaymy is a financial technology company that is focused on building payment solutions for small businesses. In detail, it allows you to use your credit card to perform various types of payment, e.g. rent, an invoice, insurance premium, and even income tax. Through ipaymy, you get to delay your accounts payable, thereby improving your day-to-day cash flow. Additionally, you can also receive credit card rewards for payments made to the otherwise excluded merchant category codes (MCC).

Part 2.2: Benefits and Cost

All in all, ipaymy has a ‘Points Guarantee’ policy. In essence, if you fulfil ipaymy’s terms and conditions but do not receive your credit card rewards, then ipaymy will issue a full refund for the fee paid for that transaction. By and large, this will most certainly boost your confidence to use ipaymy as the payment service provider.

Although ipaymy has several payment functions, we will just focus on making a payment to an insurance company. In this case, ipaymy charges a platform fee of 2.25% for each transaction. Additionally, you will also need to pay a Fund Safeguarding fee of $1 for each payment made to the supplier (in this case, the insurer).

At this time, I will use my cashback credit card, Standard Chartered MANHATTAN Platinum/World Mastercard. This is because the card gives 3% cashback for making a payment. After accounting for ipaymy’s platform fee, I can still earn a net cashback of 0.75%. On the other hand, if you are a miles collector, then there are a lot more credit cards to choose from. For instance, Citi PremierMiles will give 1.2 miles per dollar for the transaction.

Part 2.3: Processing Time

Generally, ipaymy takes two business days to present the payment to the merchant. After the payment has been completed, ipaymy will send an email to notify you.

Part 2.4: Step-by-Step Guide

If you are new to ipaymy, then consider signing up using my referral code. In effect, you will receive a promotional code valued at $30 for the first transaction; this will help to offset the transaction cost. As usual, here is a step-by-step guide:

1. At the main page (after logging in), click Make Payment (top righthand corner).
2. From the dropdown menu, select Domestic.
3. Next, select Invoices as the payment category. Click Move forward.
4. Given the two toggles, select Add supplier and enter the merchant’s details, i.e. Supplier’s company Name, Supplier’s Unique Entity Number (UEN), Bank, and Account Number.
5. Thereafter, you will be able to see the Supplier’s information on the screen.
6. Click on the Supplier that you wish to make the payment to, and then Move forward.
7. Under the Note to Supplier, enter your insurance policy number, and the amount that you wish to pay.
8. Upload a copy of your insurance policy’s premium notice, or any relevant proof. Thereafter, click Move forward.
9. At this stage, you can choose the option that fits your needs. Generally, I choose One-Time Payment, and this is followed by the earliest Payment Date. Click Move forward.
10. Click Add card for this payment and enter your credit card details.
11. If you have a promo code, enter it in the box as well.
12. After checking that all the information is correct, click Pay.

Part 3: CardUp

Part 3.1: What is CardUp?

CardUp is a payment platform that aims to simplify the lives of business owners by bringing both payments and collections into one easy-to-use digital platform. In detail, it also allows you to use your credit card to perform various types of payment, e.g. rent, an invoice, insurance premium, and income tax. Similarly, through CardUp, you can get credit card rewards for payments made to the otherwise excluded merchant category codes (MCC).

Part 3.2: Benefit and Cost

To point out, CardUp is licensed by the Monetary Authority of Singapore (MAS) as a Major Payment Institution under the Payment Services Act. Consequently, you can feel assured that your payments will be kept safe. At the present time, you are able to use most of the general miles or cashback credit cards to earn credit card rewards. For example, you may collect miles with Citi PremierMiles, or enjoy cashback with UOB Absolute Cashback Card.

For this purpose, CardUp charges a platform fee of 2.6% for each transaction. Moreover, if you are making a payment of $130 or less, then CardUp will charge a minimum fee of $3.40. Given that higher platform fee, I feel that most people will choose ipaymy over CardUp. Nonetheless, CardUp remains as a viable option whenever there are promotions, or if you are a first-time user (and use a referral code to offset the processing fee).

Part 3.3: Processing Time

Generally, CardUp takes three business days to present the payment to the merchant. Notwithstanding that, you may choose to shorten the processing time by paying an additional 0.3% fee. In this situation, so long as you set up the payment before 6 pm, CardUp will deliver the payment by the following business day.

Part 3.4: Step-by-Step Guide

If you are new to CardUp, then consider signing up using my referral code, ZHELIANGP464. In effect, you get a $30 promo code for your first transaction. Thereupon, this will cover the platform fee for transactions of up to $1,153. Now, here is a step-by-step guide that you may find helpful:

1. At the main page (after logging in), click Pay, followed by Payments (left navigation menu).
2. From the selection screen, under Domestic payments, select Insurance.
3. Search for the Insurer and click on it.
4. Enter the payment amount and select which card you wish to use.
5. Thereafter, select a payment plan. Typically, I will choose Standard payment.
6. Next, select when you wish to make the payment.
7. Under Policy reference, enter your insurance policy number.
8. Now, it is important to key in my referral code, ZHELIANGP464, so that you can offset $30 from the usual processing fee.
9. Click Continue to proceed.

Part 4: AXS m-Station

Part 4.1: What is AXS m-Station Pay Any Bills

Together with Singapore E-Business Pte Ltd (SGeBIZ), AXS launched the Pay Any Bills service. In detail, you can make a payment to any corporate organisation for goods and services using the company’s Unique Entity Number (UEN). To this end, you can earn credit card rewards for each successful transaction.

Part 4.2: Benefit and Cost

Unlike ipaymy or CardUp, there is no restriction on which Mastercard or Visa credit card you can use to make the payment through AXS m-Station’s Pay Any Bills service. For this purpose, AXS m-Station charges a fee of 2.6% for each transaction. Furthermore, the minimum amount for each transaction is $300 and the maximum amount is $9,999.99.

Part 4.3: Processing Time

Summing up, AXS m-Station takes five business days to process the payment. Thereafter, it will transfer the payment to the recipient’s UEN via PayNow. After the payment has been completed, the recipient will receive an email notification of the payment. It is important to realise that all successful payments are non-refundable. With this in mind, be sure to check and confirm that the recipient’s details are correct before you proceed.

Part 4.4: Step-by-Step Guide

After downloading the AXS Payment app on your mobile phone,

1. From the third row under AXS Life, tap Pay Any Bills.
2. Read through the description and tap Send Payments.
3. Read through the terms and conditions and tap Agree.
4. Enter your particulars, the recipient’s name, UEN, and email address. Moreover, enter the amount, purpose, and remarks for the Recipient.
5. Tap Submit.

Part 5: Citi PayAll

Part 5.1: What is Citi PayAll

If you are holding onto a Citibank credit card, then you may consider Citi PayAll service. In detail, you can earn Citi Miles, Citi ThankYou Points or Cash Back when you pay for expenses such as rent, insurance premiums, education expenses, and taxes, with your Citi Credit Card.

Part 5.2: Benefit and Cost

Through Citi PayAll, you will earn credit card rewards for each payment at the base earn rate of the card used. For example, if you use Citi PremierMiles, then you will earn 1.2 miles per dollar spent.

At this time, Citi PayAll charges a fee of 2.6% for each transaction.

Part 5.3: Processing Time

In general, Citibank takes four business days to process the payment. Thereafter, your recipient will receive the payment via a bank fund transfer. To point out, this also means that your recipient can be anyone and does not necessarily have to be a Citibank customer to receive the payment.

Part 5.4: Step-by-Step Guide

To begin with, you will need to download the Citibank SG app on your mobile phone. Thereafter,

1. On the main screen, tap Payments at the bottom of the navigation menu.
2. Under Payments & Transfers, select Citi PayAll.
3. On the Active tab, tap New Payment.
4. Scroll through the Purpose of Payment and tap on Insurance.
5. Select the insurer that you wish to make the payment to.
6. Enter the Policy Number, Policy Owner’s Full Name, Contact information and all the fields that you see on the next screen.
7. Tap the right arrow to proceed.

Part 5.5: Caveat

Since 22 April 2024, Citi PayAll’s service fee has been revised from 2% to 2.6% for each transaction.

Part 6: SC EasyBill

Part 6.1: What is SC EasyBill

Meanwhile, if you are holding onto a Standard Chartered credit card, then the SC EasyBill Payment Programme is for you. For this purpose, you may use your Standard Chartered credit card to make payments to education institutions, insurance premiums, rentals or the Inland Revenue Authority of Singapore (“IRAS”).

Part 6.2: Cost

Through SC EasyBill, you will earn credit card rewards for the payments made to the above-mentioned institutions. For example, if you use an SC Journey card, then you will earn 1.2 miles per dollar for the transaction.

At this time, SC EasyBill charges a processing fee of 1.9% for the transaction. Similar to Citi PayAll, the processing fee is non-refundable. Hence, you will need to pick the correct credit card to beat the processing fee.

Part 6.3: Processing Time

To sum up, Standard Chartered Bank may take up to seven business days to process the payment. Given that long processing time, you should plan your payments to ensure that they will reach your recipient on time.

Part 6.4: Step-by-Step Guide

Unlike Citibank, you will need to apply to Standard Chartered Bank for its SC EasyBill programme. In order to apply, you must have a mobile number that is registered with Standard Chartered Bank. Thereafter, send the following SMS to 77222: SMS ‘BILL’ 77222. Thereafter, you will receive an automatic SMS from Standard Chartered to acknowledge your SMS request. This comes together with the URL to apply for the SC EasyBill programme.

Part 7: Maybank’s Credit Card

On the whole, Maybank is probably one of the last few banks to offer credit card rewards for direct payments made to an insurance company.

Part 7.1: Maybank Horizon Visa Signature Card

Firstly, the Maybank Horizon Visa Signature card gives 3 TREATS Points for every $5 spent on insurance payments. In time to come, you can convert 25,000 TREATS Points into 10,000 KrisFlyer Miles (or whichever airline programme that is available). Based on these figures, you will earn an effective rate of 0.24 miles per dollar spent.

Part 7.2: Maybank Platinum Visa Card

Next, the Maybank Platinum Visa card gives 3.33% cashback on insurance payments. In order to receive this cashback, you must fulfil the minimum monthly spend amount of either $300, $1,000, or $2,000. At the same time, you can only use insurance payment for half of the monthly spend amount (for each tier). To illustrate, if you are looking at a total spend of $300 a month, then the total insurance payment that qualifies for this minimum monthly spend amount is $150.

Part 8: Final Thoughts

As a matter of fact, the best way to pay insurance premium today may not exist tomorrow. After all, the banks need to ensure that their vault doesn’t suffer from a haemorrhage. Accordingly, I will suggest you to evaluate the benefits and costs of each option before you proceed. If you are keen to read my analysis on these options, then be sure to subscribe to my free newsletter where I share exclusive insights with my readers.

First Published: 2 March 2022
Last Updated: 21 May 2024