The Buyt Desk
If you have missed your insurance policy premium payment owing to some avoidable situation, here is what you can do to reactivate it.
If the premium of your insurance policy is due for more than 30 days, but you want to reactivate the policy, then get in touch with your service provider as early as possible. According to the IRDA norms, you will be charged a 9 % penalty on the premium amount from the due date. This amount gets added to the overdue amount. After clearance of this amount, your service provider will reinstate the insurance policy. Your service provider confirms it in the form of a revised policy document.
The condition for the ULIP holder for policy lapse is that if the policyholder did not pay the premium even after 45 days from the due date, ULIP will go for its premature closure. And if not renewed in the next 180 days from the due date, the service provider will ask you to submit a Good Health Declaration and COVID questionnaire. If you are unable to pay the premium because of your bad health, but want to continue with your policy, then you will have to give all the documents to your service provider to ascertain your medical conditions. Further, you will be asked to do medical tests to check your physical fitness level. In a few cases, based on the new findings of your health, the service provider might revise the policy terms and conditions and its premium. And the new policy will reinstate only after the payment of the new premium amount.
What You Can Do To Avert Missing The Premium Payment
Keep Checking The Policy Premium Payment Date – The service provider do their job of informing you about the premium payment via different communication method such as SMS, Email, call, etc., however, sometimes you miss that as well. You should be proactive in this situation and check the policy premium payment date online well in advance. In this condition, earlier is better, so instead of procrastinating the payment, pay the premium way before the due date.
Automate Your Payment – The easiest way to regularize the premium payment is automating the same. Use auto payment options through net banking, UPI payment, etc. The premium amount will get automatically deducted from your account on the date you have chosen to make the payment.
Don’t Delay If You Are Already Late – If you have missed the insurance premium payment date because of any reason, don’t further delay it. The interest charged on the outstanding premium is somewhere between 8-9 % p.a. With some service providers, it is even higher. Delay in payment will further add the penalty load, and the policy will reinstate only after the clearance of all the dues.
Listen To Your Service Provider – The service provider will always provide you with the best guidance regarding the policy premium amount and date. You can always take their advice regarding the missed payment and act according to their instruction.
A life insurance policy is more than just a policy. It acts as a protection net for the family during the uncalled time. By paying your policy premium on time, you keep your protection net in a good condition.
