The Long Read
Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)
Yes, of course!
Paying term insurance premiums on time is how you can ensure your family will receive the insurance money from your life insurance company when you pass away. Your insurer can keep their promise of paying out the insurance money only when you have kept your end of the bargain i.e. pay your premiums on time.
Simple! If you do not pay your term insurance premiums on time, your policy will lapse.
You will not only lose all the premiums you have paid so far but also all the policy benefits.
You will essentially be putting your loved ones at risk.
Grace period is an additional period of time offered by insurers from the premium due date during which the term insurance policy remains active. It is 15 days if you pay your premiums monthly and 30 days if you have opted for an annual premium payment.
It is offered to help people avoid a policy lapse and pay the premium, especially when they are facing a financial emergency and cannot clear the payment on the due date.
Let’s hope you will always be able to pay your premiums on time without needing a grace period to clear your dues!
Yes, thankfully you can! Here’s how you can do it.
But remember, the new term policy can come with a higher premium and new terms & conditions. Depending on your life insurance company, you may also be required to pay a penalty.
Our advice? Don’t make a habit of letting your policy lapse and then reviving it!
Good news! You can choose your premium payment term aka how long you’d like to pay your premiums. Depending upon your requirements, you can opt for
Single pay - Pay only once in the policy duration
Regular pay - Pay till the end of the duration
Limited pay - Pay only for a few years
Find out more about premium payment terms, the benefits of one option over the others and how you can choose the best term insurance premium payment term that works for your requirements.
Well, that's entirely up to you! You can choose to pay your term insurance premium annually, bi-annually, quarterly or even monthly.
But which premium payment frequency should you choose? Find out in detail.
Set up auto-pay to ensure you never miss out on your premium payments
Set payment reminders on your phone/laptop/email
Ask your family to remind you (after all, they will be the ones to suffer the most if your policy lapses!)