Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Nov 17, 2021

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The Truth in a Nutshell

  • Most life insurance companies allow online payments but may have restrictions on payment methods
  • It’s common for insurance providers to limit payments to electronic fund transfers (EFTs)
  • Life insurance companies with flexible online payments could help you prevent coverage lapses in emergencies

Choosing one of the life insurance companies that allow you to pay your bill online can make your life easier. Many insurance topics revolve around customer satisfaction, and online billpay is something customers want.

To help you choose a life insurance company, we’ll explain life insurance policy payments. We’ll also tell you which companies allow you to pay your bill online.

Get everything you need to find the best life insurance companies that allow you to pay your bill online, then take advantage of our free quote tool above to get rates from companies near you.

Which life insurance companies offer online payments?

Finding a life insurance company that offers convenient payment options is a wise choice. The Better Business Bureau categorizes billing and payment issues as one of the most common complaints from customers.

Payments and billing shouldn’t be that complicated. However, some companies have yet to transition to online platforms. Online platforms allow policyholders to change billing information, make payments, and more.

Most large insurance companies have added more payment options to help policyholders pay their bills with ease. In fact, most insurers will now allow policyholders to set up automatic payments.

So, which companies allow you to pay your bill through eServices? You can bet on any of our top 10 life insurance companies for online payments. The list includes:

  • MetLife – EFT Account
  • Prudential Financial Inc. – EFT Account
  • New York Life Insurance – Credit Card or EFT (State-dependent)
  • Principal Financial – Credit Card or EFT
  • Massachusetts Mutual Life Insurance Co. – Credit Card or EFT
  • Jackson National Life Group – Credit Card or EFT
  • American International Group – EFT Account
  • Transamerica – Credit Card or EFT
  • AXA – Credit Card or EFT
  • Lincoln National Corp. – EFT Account

Some companies may have restrictions on credit card brands or payment types. For example, Lincoln Financial Group (Lincoln National) doesn’t allow credit cards but does accept checking accounts.

In addition, many other companies will allow you to pay and manage your bill online. For example, Nationwide life insurance and Allstate allow policyholders to pay bills online or via mobile app.

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Are there other ways to pay your bill?

Most life insurance companies will encourage policyholders to enroll in automatic payments. Usually, these payments will be withdrawn from a bank account and not through a credit card.

There are some obvious pros and cons to this scenario. However, the good thing is that the policyholder can make payments effortlessly. There’s no stress about missing due dates.

This is a good thing unless you aren’t sure that you’ll have the money to make your insurance payment. If you’re running low on money, it might be a hassle to stop your automatic payments.

The other downside is that you might not be able to earn any credit card rewards if you enroll in autopay with certain companies.

If you are strategic with payments and billing, you can earn money back on payments you would make anyway.

Many companies like AAA offer a variety of insurance types. They also have online bill pay. For more information, call the AAA life insurance phone number.

Why don’t all life insurance companies allow online bill pay?

Many life insurance companies are looking to make as much profit as possible. If your life insurance company offers autopay but not online bill pay, there’s probably a simple reason.

Credit card companies charge a small fee for each transaction. As a result,  the life insurance company loses a small percentage of each payment.

This might not seem like much, but a small percentage of millions adds up rather quickly.

In addition, credit card payments are much easier for policyholders to dispute if necessary. Life insurance companies continue to secure payments by limiting payment options.

In short, the life insurance companies that don’t allow you to pay your bill online with a credit card are simply looking to maximize profits.

What if I can’t pay my bill?

Punishments for a failure to pay your life insurance bill are dependent on your insurer and the type of policy you have. Some policies are more flexible with payments than others.

According to the Insurance Information Institute, failure to pay your policy premiums will result in a lapse of coverage. If that happens, you may not be able to reinstate your policy.

Is it bad to let insurance coverage lapse? Unfortunately, letting your insurance lapse could mean an increase in monthly rates. You may also find it difficult to choose a new insurance provider. So it’s best to avoid a lapse when possible.

Some life insurance policies allow you to use a portion of the death benefit to pay your life insurance rates. Once again, you’ll need to confirm with your insurance company.

These are potential concerns if you can only pay for your life insurance policy via EFT.

For example, a credit card payment allows you to use another payment source to cover your monthly bill. Also, it allows you to buy some time before your next monthly payment is due.

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The Truth About Life Insurance Companies That Allow You To Pay Your Bill Online

The truth is, many life insurance companies will accept online payments. However, they might have limits on the type of payment or brand of credit card. Insurance companies don’t want to lose income when collecting payments.

By now, you should have a better understanding of life insurance companies that allow you to pay your bill online. Before you go, take advantage of our free quote tool below to get rates from insurers near you.