Compare Life Insurance Companies That Let You Pay the Bill by Money Order (2022)

If you’re looking for life insurance companies that let you pay the bill by money order, you may have fewer options than you did ten years ago. Because money orders are becoming less popular in favor of more instant payments, most companies are moving away from money orders and checks for payment.

Whether you have a term policy or whole life insurance, you can pay your bill in a variety of ways, including online or through automatic debit. If you do want to pay by money order we can help. Read on to find out which companies still accept money orders for payment,

Do you need quotes from life insurance companies that let you pay the bill by money order? Enter your ZIP code to see what you could pay with a money order today.

What life insurance companies let you pay the bill by money order?

Which insurance companies take money orders? While there are many ways to pay your insurance premiums, money orders are becoming less common. Instead, most insurance companies are moving towards digital payment methods that verify near instantly.

Even still, some of the companies that still accept money orders include:

• United Life
• Allstate
• State Farm

While it’s being phased out, you can still find many insurers who will take your payment by money order or check through the mail.

Life insurance companies that don’t let you pay by money order are most likely due because they prefer more modern ways of sending money instantly.

Can I pay for life insurance with a money order?

A money order is more trusted than a check due to its pre-paid nature. However, before you can get the money order, you’ll likely have to pay the balance plus any fees that the institution charges.

Whether or not your insurer still takes checks and money orders will largely depend on individual preferences. Some insurers will prefer to get the money as quickly as possible, making mailing money orders a less than ideal option.

That being said, there are still many insurers who are willing to take money orders for premium payments. Contact your insurer and verify their status on receiving money orders before you get one and have nowhere to send it to.

What are the risks for an insurer when you pay for insurance with a money order?

When you decide to pay your insurance premiums with a money order, you may be taking on additional risks that you weren’t aware of. Using a money order to pay your bills takes time, which can be a considerable risk to you and an insurer.

In addition to the wait, some of the additional risks with money orders include:

• Potential to get lost in the mail
• Additional fees
• Mail takes time to get places
• There may be a capped amount

If you want to ensure that your life insurance premiums get paid on time without any issues, you might want to consider one of the more modern payment methods.

If you’re getting your money orders done at a bank, an agent may be able to get you a debit card to directly pay your premiums from home instead of having to take the same trip every month. If you’ve been paying for car insurance with money orders or wondering “Can I pay for car insurance with a money order?”, the same thing applies. If you’re with the same company for both policies, you may be able to get everything on a single bill and pay online.

How can I pay for my life insurance?

While money orders may still be an option for you, there are a lot of new, and many would argue better, ways to pay your bill. First, consider how many payments you’d like to make. Then decide how you’d prefer to pay.

You have the option to pay your premiums in three ways. You can split up your payments in these ways:

• Monthly – Your premiums will be split up into monthly payments, which you’ll be responsible for paying or having money in your account to be withdrawn.
• Yearly – If you don’t want to worry about the recurring monthly payments, you can pay once a year and have it done with.
• All at Once – You could pay the lump sum of the cost of the policy all at once, at a discount of 3% to 5%. This is also called single premium insurance.

Some of the options that allow you to pay for life insurance include:

• Check
• Money order
• Bank transfer
• Debit card
• Credit card
• Cash

As previously mentioned, each insurer will decide which kinds of payment they will or won’t take. Therefore, you should make sure that your insurer handles your preferred payment method before you have to go through the hassle of getting a new card or checkbook.

Should I pay my life insurance rates over time or all at once?

Whether or not you decide to pay your premiums on a monthly or yearly basis will depend on what your financial situation looks like. Of course, you can save money if you pay in a lump sum each year, it has to fit into your budget.

Because an insurer has to pay a processing fee for each check or card transaction, the company will usually give you a discount if you pay all at once, reducing what they have to pay to the middle man. It also removes the risk that you will stop making payments, guaranteeing the insurance company receives the full premium.

What if you’re unable to pay your life insurance premiums?

If you’re unable to pay your life insurance premiums for any reason, you may have your policy canceled. If your insurer stops receiving payments and hasn’t heard anything from you, expect to lose the coverage.

If this occurs due to an instance where you’re unable to pay due to a specific payment method being unavailable, your insurer might give you a break. However, as with any other hiccups during your policy, you should contact your insurer as soon as possible.

Are there options for people who become disabled to pay for life insurance?

If a sudden disability impacted your ability to work, you would likely lose your ability to pay for your life insurance premiums. However, with a disability income rider, your policy will provide you with a monthly income and waive the monthly premiums.

According to the National Association of Insurance Commissioners, you can sign up for a life insurance policy with an income disability rider to help pay. This rider can help ensure that you still have income and a way to transition into your new way of life.

What is cash value on whole life insurance?

When you sign up for a whole life insurance policy, a portion of your monthly premiums will be put into a savings account. This savings account is called the cash value of the life insurance policy. Some insurers will also invest it at a small percentage, accruing value.

With the cash value on your policy, you can:

• Withdraw it
• Loan against it
• Pay your premiums

Cash value is one of the reasons whole life insurance is often much more expensive than term life insurance.

How can cash value be used to pay premiums?

As you pay into your whole life insurance policy, your cash value will grow. As mentioned, you can use it to pay for expenses in retirement or a loan against it. However, when you’ve accrued enough, you can also use it to pay your monthly premiums.

This can help during a month when you may have an issue getting your payment to the insurer on time or can be a way for you to stop worrying about your expenses.

Paying Life Insurance by Money Order: The Bottom Line

While money orders might be on their way out, there are still plenty of insurers that take them. If that is your primary way to pay, you should ensure that your insurer takes money orders before you begin your policy. There are also many other ways to pay your life insurance bill.

Are you looking for rates for life insurance companies that let you pay the bill by money order? Enter your ZIP code to find an insurer that accepts money orders near you.