Best Credit Card for Insurance Premium Payment India 2026 — Where You Still Earn Rewards

Jump to section

Checked October 2026. Many cards now exclude insurance from rewards or cap it, including most American Express and several Axis cards. Each card above was checked against its issuer’s current terms for how insurance premiums earn; caps are shown next to the rate. Check whether your insurer charges a convenience fee for card payments before paying a large premium.

Paying insurance premiums by card in 2026

Paying life and health insurance by card gives up to 50 days of float and, on some cards, rewards. But many issuers now cap reward points on insurance payments per month or per statement, and a few exclude them. Individual life and health insurance premiums have been exempt from GST since 22 September 2025, so premiums are cheaper than before.

Worked example

A ₹60,000 annual family health premium paid on a card earning 3.3% value earns about ₹2,000 — if insurance is not capped. On a card that caps insurance at, say, 1,000 points a month, you might earn a fraction of that. Check the cap before choosing.

Smart moves

• Use the premium to reach an annual spend milestone or fee waiver — often worth more than the base rewards.
• Avoid converting premiums into card EMIs unless the EMI is genuinely interest-free; interest and GST on EMIs usually cost more than the reward.
• Keep the payment receipt in your name for Section 80D (old regime).

Related: health insurance guide and how much term cover you need.

Reviewed October 2026. Card features change often — confirm current terms on the issuer’s site before applying.

FAQs

Is GST charged on health insurance premiums?

Individual health and life insurance premiums are exempt from GST since 22 September 2025.