Benefits Of Electronic Funds Transfers For Insurance Payments
There’s a way of making your insurance payments a worry-free and swift experience. Read below to discover the benefits of paying your insurance through EFT transfers.
There’s a way of making your insurance payments a worry-free and swift experience. Read below to discover the benefits of paying your insurance through EFT transfers.
Your insurance policy requires you to pay your premiums on time to avoid policy cancellation.
Most insurance policies require monthly premium payments, which could be a time-consuming and tedious process if you pay your premiums in cash or any other manual method, such as a check.
However, there’s a way of making your insurance payments a worry-free and swift experience.
This way is Electronic Funds Transfer (EFT), a fully automated process that allows you to pay your insurance premiums by transferring money from your credit card or bank account to directly your insurer's bank account. EFT is the product of modern informational technology that has revolutionized the payment system throughout the world.
With EFT, you no longer need to handle money or checks. Transferring funds to your insurer's account is just a matter of a few clicks now.
Here, we take a look at some of the most prominent advantages of making your insurance payment via Electronic Funds Transfers.
• Requires One-Time Setup Only
One of the most significant advantages of using EFTs for insurance payments is that it requires a One-Time Setup only.
For example, if you're using your bank's mobile application, you just need to set your insurer's bank account as a payee, after which all of the future payments will be taken out of your account with your permission on the same day of every month.
EFT allows you to say goodbye to writing out a check or paying via money order.
• Save Time
Imagine how much time would it require to open your bank’s application and click the “Send” button? Certainly, nothing more than a few seconds.
That’s the time you require to pay your insurance premiums every month as compared to traditional payment methods where you need hours to post a check, handle money, or pay via cash at your insurer’s outlet.
• Save on Fees
If you send insurance payments to your insurance company via mail or money order, your insurer may charge you some specified fees in terms of check processing or services fees which could range from $3 to $10.
However, when you make insurance payments via EFTs, you'll be charged absolutely no fee, which allows you to save a considerable amount of money that you can use for other expenses. Some Insurance companies even offer additional discounts if you choose EFTs to pay the premiums.
So, contact your insurer to get the information about discounts they offer on choosing EFT payments.
• Chances of Fraudulent Activities are less
All Electronic Funds Transfers are encrypted and secured against certain data breaches or cybercrimes, so the chances of fraudulent activities are minor.
In addition, you can easily trace the payments that you've made via EFTs to monitor their status until they're received by your insurer. Since all your EFT transaction is completely automatic and electronic, there's nothing to worry about losing or misplacing a paper check.
You can see the ease, simplicity, and flexibility of using EFTs for your monthly insurance payments, EFTs offer tremendous advantages.