How Can I Pay Term Insurance Premium After The Due Date?
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Term insurance policies are long-term contracts that can last anywhere from 30 to 40 years. As long as renewal payments are paid by the stated deadlines, the life insurance coverage remains in effect during the policy duration. It is likely that the policyholder will miss a premium payment due date throughout the insurance period. This could be due to unavailable payment methods, a lack of finances, illness, unexpected bills, and so on. So, if you are wondering what would happen if you forget to pay your premiums, whether your life insurance coverage is about to run out of money will lapse automatically, and what would happen to the premiums you've already paid, read on.
How Can I Pay Term Insurance Premium After The Due Date?
After the premium due date, the policyholder has a grace period during which he or she can pay the premium while still receiving all of the advantages of life insurance coverage. The length of the grace period is determined by the regularity with which premiums are paid (monthly, semi-annually, or annually) and the type of insurance plan. The grace period for monthly premium payments (regular) is normally 15 days; however, it extends to 30 days for lengthier payment options like yearly and half-yearly. Most insurers will email you a reminder for your premium payment well in advance of the due date, and then let you know if your insurance has entered the grace period.
What Happens If You Don’t Pay Premium Even During the Insurance Grace Period?
Not paying premium payments during the insurance grace period, especially for life insurance policies like a term plan, means jeopardising the financial safety you've arranged for your loved ones. A lapsed life insurance policy results in a significant loss for the insured, as he or she loses the total amount of all premiums paid previously. His family also loses the cash assistance they would have received under the policy.
Should You Revive a Lapsed Life Insurance Plan?
Every insurance company in India offers policyholders the option of renewing their policies, albeit the terms and conditions vary per organization. Policyholders are entitled to a revival period in addition to the insurance grace period, which can last up to two/three years depending on the policy terms and conditions. It's when they have to pay money for things like policy renewal fees, interest charges, and medical test costs.
Endnotes
Many consumers are perplexed whether they should renew an existing policy or purchase a new one after the insurance grace period has expired. Anyone can find themselves unable to pay their insurance payment until the grace period expires. It's time to make a decision that will have a long-term influence on your insurance coverage. Hence, you should consider all of the costs associated with reviving and purchasing a policy and then compare them to reach a decision.
Also read: Premium Payment Options Under A Term Insurance Policy
Advantages Of Limited Premium Payment Term Insurance Plans
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
