Paying your ₹50,000 annual insurance premium on the wrong card costs you ₹665 in lost rewards. Here's how to not leave it on the table.
Last updated June 4, 2026 · By Ash K · 8 min read
On a ₹50,000 annual insurance premium portfolio, HDFC Regalia earns ₹665 in reward points. SBI Cashback earns ₹0. The same payment, two different outcomes, based purely on which card you use.
The cards that quietly give you nothing on insurance
The most popular cashback cards in India all have explicit or effective exclusions for insurance premium payments. Knowing this before you pay is the entire point of this guide.
Cards that actually earn on insurance premium payments
Annual vs monthly premium: which is better for rewards?
Almost every insurance company offers you a choice between annual and monthly premium payment. For credit card rewards, annual payment is almost always better.
The ₹50,000 annual premium portfolio: card-by-card comparison
A typical middle-class Indian family in 2026 pays ₹40,000 to ₹80,000 per year across term, health, and car insurance. Here's exactly how much you'd earn on a ₹50,000 portfolio with each card.
| Card | Annual Fee | Insurance Rate | Reward on ₹50K | Net (after fee) |
|---|---|---|---|---|
| HDFC Regalia | ₹2,500 | 1.33% | ₹665 | -₹1,835 (from fee alone) |
| Amex MRCC | ₹1,000 | 2% | ₹1,000 | ₹0 (net neutral) |
| Axis Magnus | ₹12,500 | 1.5 to 2% | ₹750 to ₹1,000 | Needs full spend base |
| HDFC Millennia | ₹1,000 | 1% | ₹500 | -₹500 (net negative) |
| SBI Cashback | ₹999 | 0% | ₹0 | -₹999 (fee wasted) |
| Amazon Pay ICICI | Free | 1% | ₹500 | +₹500 (net positive) |
Note: Regalia's net negative from fee alone doesn't mean it's a bad card. Regalia earns across all your other spend too. The table shows insurance-only economics. Overall card value is much higher.
Term, health, and car insurance: which to prioritise on the best card
If you have a card like Regalia that earns on insurance, stack all three types on it. The MCC is the same (life/non-life insurance) and you'll earn the same rate across all.
Your action plan for insurance premium payments
- Pull up the T&C of every credit card you own. Search for "insurance" in the exclusion list. Mark the ones that exclude it.
- If you have HDFC Regalia or Amex MRCC: use it for all your insurance renewals this year. Set a reminder at renewal time.
- Switch to annual premium payment for all policies if you're currently paying monthly. Same cost, better reward mechanics.
- Use the Stack Builder tool to build a 2-card stack where one earns on insurance and one earns on your other top spend category.
- Check for LIC portal surcharge before paying large LIC premiums on card. Factor it into your reward calculation.
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Frequently asked questions
Which credit card is best for paying insurance premiums in India?+
HDFC Regalia is the most accessible card that earns full reward points on insurance premium payments with no exclusion clause. Amex MRCC earns 2% effective value if you redeem points well. SBI Cashback explicitly excludes insurance, making it one of the worst choices despite its headline 5% rate.
Does SBI Cashback card give 5% on insurance premium payments?+
No. Insurance premium payments are explicitly listed in SBI Cashback's exclusion list. You earn 0% on insurance paid with this card, despite the 5% headline rate. This is one of the most common misconceptions about this card.
Is it better to pay insurance premium annually or monthly on a credit card?+
Annual payment is almost always better for credit card rewards. A single ₹50,000 transaction earns reward points in one cycle. Monthly payments of ₹4,166 may fall below minimum reward thresholds on some cards, and you earn the same total but with 12 transactions and 12 billing cycle considerations.
Can I pay LIC premium with a credit card and earn rewards?+
Yes, LIC accepts credit card payments. However, LIC online portal may impose a surcharge (typically 0.9 to 1%) on credit card payments. Factor this into your reward calculation. HDFC Regalia earning 1.33% on a 0.9% surcharge still leaves a positive 0.43% net.
Do credit card reward points expire on insurance premium payments?+
Reward points expiry depends on the issuer, not the transaction type. HDFC Regalia points expire 2 years from earning. Amex MR points don't expire as long as the account is active. Always redeem before expiry dates regardless of how the points were earned.
Can I pay health, term, and car insurance all on the same card?+
Yes. If your card earns on insurance MCCs, it will earn on health, term, and car insurance equally. Consolidating all three to one card like HDFC Regalia or Amex MRCC maximises your reward per year and keeps your insurance spend in one trackable place.
Does HDFC Millennia give cashback on insurance premium?+
HDFC Millennia's 5% cashback applies to partner merchants only. Insurance portals are not in this partner list. Insurance payments with Millennia earn approximately 1% cashback, not 5%. HDFC Regalia is the better HDFC card for insurance premium payments.
What is the MCC code for insurance premium payments?+
Insurance companies are typically assigned MCC 6300 (Insurance Sales and Underwriting) or MCC 6311 (Life Insurance). When your card has exclusions based on MCC codes, these two are most commonly listed. HDFC Regalia has no listed exclusion on these MCCs.