The Buyt Desk
You must always pay your insurance premium on time. The timely payment of premiums ensures that all financial protections you have availed stay in force. Insurance companies send reminder notice one month in advance to ensure that policyholder does not miss the payment deadline. However, due to any reason, if you fail to pay the premium on time, insurance companies give you a grace period of 15 days to 30 days. The 15 days grace period is for those paying premiums monthly, and 30 days is for those paying premiums quarterly, half-yearly, or yearly.
What Happens When You Delay the Premium Payment?
Suppose your premium payment date is the 10th of a month, and you fail to pay it before the date. You get a grace period of 15 days. You miss this deadline and push it to next month. In the middle of the month, there is a health emergency for which you needed to use your health cover but you will not get the benefit as you have not paid the premium. In addition, you will have to pay a late fee as a penalty for missing the payment, which is calculated based on the premium amount.
To avoid such a situation pay your insurance premium on time. It is important to note here the delayed payment will have no impact on the sum assured if the policy has that benefit. If you miss the payment for more than a month in a row, your policy will lapse.
Plan Your Payment In Advance to Avoid Delay
Offline Method:
NACH: In this method, the bank deducts the premium at a pre-decided date and forwards it to the company.
Bill Pay: This method is also known as EBPP. In the system, you get a statement electronically. You can then use any electronic method to complete the payment.
Online Method:
Website – You can make the premium payment on the respective company’s website through a debit card, credit card, UPI, and other options.
