Insurance premiums are one of those things that often feel like a “necessary evil” of modern life. Evil in that it can be expensive (though not always the case!), taking up a sizeable chunk of your expenses each year. Yet, when you do need it, you are ever so glad you have it and are likely happy to have paid those premiums.

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Key insurance policies everyone should own

There are many different types of insurance plans and policies, each with their own coverage terms, merits and purpose in your portfolio. These plans differ from individual to individual, and there isn't a set list of 'best insurance plans' for everyone.

Here are, however, five of the most important insurance types that all working adults should consider in order to be adequately covered:
  1. Health: This insurance will cover your hospital and surgical bills, as well as outpatient care in public or private hospitals.
  2. Life: Life insurance plans comes as either Whole Life or Term Life, each of which has their own set of differences (and fervent supporters). In both cases, they provide a payout to your family in the unfortunate event of your passing.
  3. Critical Illness: This insurance type pays out a specified sum when a critical illness is diagnosed.
  4. Disability: This will assure a certain monthly sum for your loss of income if you are unable to work due to injury or illness.
  5. Personal Accident: This insurance type covers medical expenses and other bills accrued for outpatient services as a result of an accident.

 

Why should you pay your insurance premiums with your credit card via CardUp

Paying these insurance premiums may not be much fun, but there is no reason why the process should not be easy. Setting up all your premiums for the different insurance types on a single platform such as CardUp not only makes it easier to manage, it also comes with these other benefits:

  1. Earn rewards on your credit cards for this large, recurring payment (both miles and cashback)
  2. Maximise your rewards by contributing to your card's monthly minimum spend requirements, if any
  3. Free up cash for other uses
  4. Digitise your payments by shifting them online, making it easier to manage and track

 

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How much can you earn or save by paying your insurance through CardUp?

While there is no fixed and absolute amount you should be spending on your insurance premiums, it still is a substantial recurring expense. Even though putting them on your credit card with CardUp comes with a small processing fee per transaction, the potential rewards earned on your cards can still easily outweigh this fee.

Here's how:

 

✈️ Scenario 1: Miles

While simply putting your insurance premiums on your credit cards through CardUp might not earn you sufficient air miles for a flight, combining them with your other spend would get you a luxurious getaway for cheap!

By combining your premiums with other CardUp spend such as helper salary, rent, education fees, electricity bills and more, you might just be able to earn sufficient miles to fly business class to Japan at just half the price:

Payment type Spend CardUp fee (2.6% per transaction) Earn (1.5 miles per dollar)
Insurance premiums $800 per month

$132.60 per month

= $1,591.20 per year

94,186 air miles

 

Worth $3,944 when redeemed for a business class flight to Japan!

Rent $2,900 per month
Education fees $600 per month
Helper salary $600 per month
Electricity bills $200 per month
Total $61,200 per year

 

Through CardUp, you're now able to earn sufficient miles to fly to Japan on business class (worth $3,944), while paying only $1,591.20 in fees!

> Read more: Best air miles cards to earn more miles on CardUp

You can save even further with the ongoing EVERY4FREE promotion, which gives you a free payment with every four insurance premium payments set up on CardUp! Learn more about this promotion here.

 

💰 Scenario 2: Cashback

One of the most popular cashback cards in the market is the UOB One Card, which gives up to 5% cashback on all expenses, CardUp spend included. However, the minimum requirements to attain this 5% cashback is to have a monthly minimum spend of $2,000.

For many cardholders, you may fall into the 3.33% cashback category if your monthly spend sits at $500. By using CardUp, you can now put payments such as your insurance premiums ($400) monthly electricity bill ($200), helper salary ($600), and your child's school fees ($300), bumping you up to the next tier of cashback rewards!

> Read more: Best cashback cards to maximise rebates on CardUp

 

Here's how you can get started paying your insurance premiums with CardUp

CardUp makes paying your insurance premiums a breeze! Here's how you can get started setting up recurring payments in a few minutes, allowing you to spend less time making payments and more time enjoying the benefits of your cards:

  1. Sign up for a free account, or log in to your existing account
  2. Select "Insurance" as your payment type
  3. Choose a pre-loaded insurance provider or add a new recipient if your provider is not listed. Fill in the relevant details, such as the provider's name and bank account number
  4. Fill in your payment amount and details
  5. Select your credit card, review and confirm your payment!

 


 

Your insurance premium payments should not be something that you dread each time it comes around. With CardUp, you'll be able to rack up even more rewards on your favourite credit cards, while staying insured at the same time. Also, don't forget to utilise the EVERY4FREE promo code to save even more!

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