What You Should Know
- Money orders are accepted by most life insurance companies in the United States
- Some companies, like AAA, do not accept money orders
- You can get money orders at banks, credit unions, and at most U.S. post offices
When you search for a life insurance policy, there are many different ways you may plan on paying the premiums. One way that some people choose to pay is with a money order. But do all life insurance companies accept this type of payment?
There are a lot of life insurance companies that let you pay the bill by money order. These companies will disclose that information to you before you ever commit to a policy. You can also use a life insurance guide for help.
The benefits to paying with a money order vary depending on your situation, so if you know you may only need to use a money order once or twice, it's probably not worth it to plan your whole life insurance policy around it.
Before you buy life insurance that accepts money orders as a form of payment, be sure to use our free tool above to compare rates from top companies in your area.
Which life insurance companies accept money orders as a form of payment?
There are plenty of life insurance companies that accept money orders as a form of payment. Some of the more popular insurance companies that will accept a money order include:
- Northwestern Mutual
- Haven Life
- State Farm
- Banner Life
- Pacific Life
- New York Life
- Mutual of Omaha
Technically, any life insurance company that exists within the individual-market marketplace is required to accept money orders as a form of payment. This is why the vast majority of life insurance companies you consider will likely accept a money order.
If you want more information from top companies about their willingness to accept money orders, you can always check with an agent. Once you are speaking directly to a life insurance agent with any specific company, you can ask about their policies.
For example, you could ask about AIG life insurance bill pay options, State Farm bill pay options, how you can pay an Allstate bill, the types of insurance payments Nationwide accepts, and so on.
Certain companies that exist outside the individual marketplace, such as AAA, do not accept money orders and are not legally required to do so. If you know you will be paying your premiums by money order, be sure to check with any insurance company you're considering to make sure that you can use a money order without having to pay any additional fees.
Why do people use a money order to pay for a life insurance policy?
If you have never had to use a money order before, the idea of finding a company that accepts them may seem a bit odd to you. But there are a lot of reasons people use money orders to make monthly payments.
Some of the reasons people use money orders to pay for their life insurance rates include:
- They don't have a checking account — While most policyholders pay with a draft from their checking account, some people don't have bank accounts. Money orders are pre-paid, so they can be used without a bank account, unlike a check.
- They need a secure way to send money — Money orders do not include your bank information, and they cannot be cashed by anyone except the recipient. People who are nervous about having their information stolen prefer money orders for this reason.
- They might bounce a check — Since money orders are pre-paid, there's no chance for a check to bounce.
- Their insurance company is international — Though this doesn't happen often, a person's life insurance policy may be with a company outside the U.S. A money order is a safe way to send the required payment overseas.
If any of the reasons listed above apply to you, it's not a bad idea to consider using a money order to pay for your life insurance coverage and other monthly bills.
Where can I get a money order?
If you have a bank account, there's a good chance you can use your bank to get a money order. Other options for purchasing a money order include:
- Western Union
- U.S. Postal Service
- Convenience stores
- Credit unions
All of the places listed above may charge fees for processing a money order request. The fees for purchasing a money order can vary between one dollar up to 10 dollars.
What's the best way to pay for life insurance?
You can pay for your life insurance policy in a number of ways. Most people enjoy the convenience of an automatic bill pay option, while others will pay for their monthly life insurance rates online.
For example, Allstate offers policyholders the option of using Allstate quick pay to pay for their bills online. With some companies, you may need to call and ask an agent how to sign up.
With Allstate, you could call the Allstate customer service number, or even the Allstate claims phone number, to see how you can sign up. If you're unable to speak to an agent, you may want to familiarize yourself with the Allstate customer service hours.
The above example applies to virtually every life insurance company. You can sign up for automatic bill pay and know that your life insurance rates will be paid on the same day of every month.
Should I pay for my life insurance with money orders?
There may be a few reasons why you need to pay for your life insurance with a money order. But it's definitely not necessary if you have another method of payment readily available.
Before signing up for life insurance based on available payment methods, you should compare life insurance policies from multiple companies at once to see how much you can expect to pay.
If you are curious how much life insurance you need, you can speak to an agent or use online tools to help you figure out what might work best for you and your loved ones.
You can even use our free quote tool below to compare rates from top companies in your area today.