What Happens When I Don’t Pay Life Insurance Premium?

Who doesn’t want to live a financially secured worry-free life? Unwanted occurrences do affect our lives, but life can still go on. This is possible with life insurance. As you grow up, responsibilities multiply.

As a social being, you start pursuing a career, get married, have children and take care of your family including dependent parents. Before your retirement, your children are all geared up for pursuing professional courses for their careers.

Compare Top 10 Guaranteed Return Investment Plan with Life Cover

Also See: LIC Jeevan Labh

And you are able to well meet their educational expenses. As you near retirement, you plan their grand wedding. After retirement, you can still enjoy a steady flow of income. The benefits of life insurance are unlimited.

A peaceful, comfortable, financially secured, and worry-free life is what you enjoy stage by stage. Even in your absence, your dependent family members can continue with the same happy existence without financial worries.

Also See: LIC Jeevan Anand

These are all the wonders of life insurance cover. The Premium you pay for a particular Policy depends on the cover and other factors. Additional the covers more are the premium.

Life Insurance Premium

Various factors determine the life insurance premium to be paid:

  • Age of the buyer; lesser the age, lesser the premium, and vice versa.
  • Smokers need to pay a higher premium compared to non-smokers.
  • Females enjoy a competitive advantage of paying a lesser discounted premium compared to males for the same policy with similar covers.
  • Amid the different life insurance policies, Term insurance requires a medical check-up of the insured. The premium is determined according to medical conditions.
  • If you nurture unhealthy or dangerous hobbies like heavy smoking or drinking, you may have to pay a very high premium. You may even be considered ineligible to buy the policy.

Who Are Entitled Not to Pay Premium

Also See: LIC Jeevan Shanti

If the policyholder dies before Maturity of the policy, i.e. without completion of the payment, the insurance company pays the rest of the premium and the nominee enjoys all benefits mentioned in the policy.

Before you buy a policy, to ensure that this condition is included within it or as an add-on feature.

You May Like: Importance of Waiver of Premium

What Happens When You Do Not Pay Premium?

If you do not pay your life insurance premium on time, do not worry. It can be paid during the Grace Period which is usually 15 to 30 days from the premium date.

In case, you do not pay the premium during the grace period, your policy will lapse. You can revive it within three years. For certain policies, the revival period is five years.

All balance premiums have to be paid. In case you cannot pay all the balance premiums at a time, you may enjoy a special revival wherein the policy date gets changed. But this facility is offered by only a few insurance companies.

If you do not revive your policy within the revival period, your policy will Lapse altogether and you will not be entitled to enjoy any benefits.

Key Benefits of Life Insurance

  • Dependent family members continue to enjoy the same lifestyle in your absence.
  • Cover for mortgages and loans in the absence of policyholders.
  • Different liabilities are met at different stages of life.
  • Protection against critical illnesses through riders.
  • Facility for a loan against the premium paid; policy benefits do not get affected.
  • A steady source of income even after retirement.
  • Tax benefits based on the life insurance premium paid.

Visit the website of the most reliable insurance aggregator and facilitator for the best term insurance cover, compare & buy online.