Best Credit Cards And Payment Options for Insurance Premiums in Singapore 2021
I’m someone who enjoys stretching my dollars and making the most of my spending.
It was only not long ago that I started getting my insurance needs sorted.
Yeah, part and parcel of adulting.
With my new insurance policies, I now have another recurring bill to pay every year.
A bill that is not that small as well.
Which is why it makes me even more eager to find a suitable credit card to pay for this bill.
Given that more banks are slowly excluding insurance as a category of their rewards program, there are not many cards out there that still offer rewards for payment of insurance premiums.
Nevertheless, here are some payment options you can consider when it comes to insurance premiums!
Note: Since the terms and conditions of banks are frequently updated, do always check with your respective banks for the latest updates!
TL;DR: Which is the Best Credit Card for Insurance Premiums in Singapore 2021?
For this comparison, we will be looking at credit cards that offer either cashback or miles, and alternative payment methods as well.
|Product||Cashback or Miles||Limitations|
|Credit Card||American Express True Cashback Card||1.5% cashback (3% on up to S$5,000 spend in first 6 months)||Only for payment made via American Express authorized channels|
|Maybank Horizon Visa Signature Card||0.4 miles per $1 spend||Low rewards|
|Maybank Visa Infinite Card||1.2 miles per $1 spend||High income requirement|
|Alternative Payment Methods||GrabPay Card||Pairing it with AMEX True Cashback Card to enjoy 1.5% cashback||Only for eligible cards|
|CardUp||Prevailing credit card rewards||2.25% administrative fee (till 31 Dec 2021)|
|Citi PayAll||Prevailing Citi credit card rewards|
Bonus 1% cashback for existing Citi PayAll customers
|2% administrative fee|
|Standard Chartered SC EasyBill||Prevailing SC credit card rewards||2% administrative fee|
How to Choose the Best Credit Card for Insurance Premiums
1) Figure Out How Much You Spend a Month
Some credit cards require a minimum spending amount in order to enjoy the rewards.
As such, it will be good to take note of your own spending and whether the card is suitable for your spending habits.
2) Take Note of the Type of Insurance Premium
Another thing to take note of is the type of insurance premium you are paying for.
This is because not all insurance payments will reap credit card rewards.
For instance, for life insurance payments, NTUC Income only allows the first premium can be made via credit card.
Credit card payments are not accepted for subsequent renewal premiums or single premium plans.
Also, payment methods including VISA and AMEX can only be used for a new policy or rider application.
One way to check for exclusions is via the MCC code for insurance, which mainly falls into two categories:
- 5960: Direct Marketing Insurance Services
- 6300: Insurance Sales, Underwriting, and Premiums (e.g. monthly or yearly premiums)
American Express True Cashback Card
The American Express True Cashback Card offers a typical cashback rate of 1.5%, with no minimum spend required.
For the first 6 months, 3% cashback can be enjoyed on up to S$5,000 spend, giving this card a slight upper hand as compared to the rest of the cashback cards.
However, only payments made via American Express authorized channels are eligible for rewards.
This refers to premium payments made via American Express, which is currently only AIA and AXA.
Maybank Horizon Visa Signature Card
The Maybank Horizon Visa Signature Card is another credit card to consider for insurance premium payments.
For regular spending, this card offers a good 3.2 miles per $1 local spend, making it a pretty good card to have for your regular shopping and dining needs.
However, payment for insurance premiums would fetch 0.4 miles per $1 spend.
Not the best rate, but probably better than nothing.
Maybank Visa Infinite Card
The Maybank Visa Infinite Card is another Maybank card that offers miles for premium payments.
As compared to the Maybank Horizon Visa Card, this card offers a higher rate of 1.2 miles per $1 spend.
The only catch is that you have to be slightly higher in SES to be able to enjoy this, as the minimum income requirement for this card is $150,000 a year.
Do note that this reward is capped at $3,000 per calendar month as well.
Alternative Payment Methods for Insurance Premiums
Besides using credit cards to reap card rewards, there are other methods to do so as well.
Using GrabPay Card
In July last year, Visa reclassified the MCC category of GrabPay top-ups as 6051: Quasi Cash Merchants.
This reclassification was mostly bad news to people who have been enjoying rewards from both platforms, as earning points from both Grabpay and credit card reward schemes were no longer possible.
However, not all hope is lost.
If you’re an American Express True Cashback cardholder and you have an insurance premium where American Express is not accepted, you can still earn 1.5% cash rebate via top-ups to GrabPay, and then making your premium payment via the GrabPay card.
When CardUp was first launched, it garnered a lot of attention because it gave consumers a new way to pay for their insurance premiums and still be able to earn credit card rewards.
This is a quick guide of how CardUp works:
1) Individuals signs up for an account on CardUp to pay for their monthly bills (e.g. landlords, insurance firms or tax bodies)
2) CardUp charges the consumer’s chosen credit card for the payment amount, along with a processing fee (2.25% up to 31 Dec 2021)
3) Individuals get to enjoy credit card rewards including air miles, cashback or rewards points
By doing so, we are not restricted by the exclusions by the banks when it comes to insurance premium payments.
And in case you’re looking for a good cashback credit card with no minimum spend...
Note: Do consider CardUp’s processing fee and evaluate whether your rewards scheme is ultimately beneficial for you!
Citi PayAll is another strong contender for bill payments.
Since last year, Citi PayAll has included more bill types to be eligible for their rewards, which consists of insurance payments as well.
Get to these rewards enjoy depending on whether you’re a new or existing Citi customer:
- Existing Citi PayAll customers: Enjoy a bonus 1% cashback on all Citi PayAll transactions when a recurring payment of min. $500 per month is set up for at least 3 months (cashback capped at $200)
- New Citi PayAll customers: Enjoy service fee waiver on 2 transactions of the lowest amounts with a min. of 3 completed transactions (capped at $400)
The administrative fee for Citi PayAll is 2%.
You can enjoy Citi PayAll as long as you are a Citi cardholder, but do note that all Citi PayAll transactions are excluded from the min. spend of $800 for the bonus cashback for Citi Cash Back Card.
Eligible Citibank cards would include:
Standard Chartered SC EasyBill
Similar to Citi PayAll, SC EasyBill is Standard Chartered’s rendition for customers to pay bills to their credit cards and earn points after paying an administrative fee.
Besides insurance premiums, this includes payment for paying for taxes, education, and monthly rentals.
The fee is also 2% for SC EasyBill.
All Standard Chartered cardholders can apply for SC EasyBill.