Most insurance companies have policies that guard their contract with you. Such policies go even to the point of the payment. If you do not go according to what the policies state as far as on-time payment is concerned. You must get to know the possible payment options so that you can choose what will favorably work for you. The three options below are critical to any insurance beneficiary:
1. Annual full payment
This is the first option which seems to be favorable for those who have unpredictable income. With this option, you can make the payment once a year in a full amount. This saves you the monthly hustles to pay your premiums, especially during the months that you happen to be down financially. It also saves you the monthly payment fees since most companies give a paid-in-full-discounts for the annual payment.
2. Electronic fund transfer
Electronic fund transfer is the type of payment where the insurance company taps into your account to withdraw the monthly payment. If you opt for this, you will avoid the payment fee. This is normally done on the savings and the checking accounts since they do not expire. If you are forgetful but at the same time not able to afford the annual payment, you can opt for this option. You only got to ensure that the account is loaded enough to pay all your bills on electronic fund transfer.
3. Monthly electronic, cash or credit payment
Last but not least is this option for sharp people. This option demands that every month, you got to remind yourself to make the payment either electronically, by credit or on cash. You can have a reminder so that you can track your payment. The only disadvantage is that you will have to pay the monthly payment fees, and you might not benefit from any payment discount.