During this time, your term insurance policy remains valid.
What to Do During the Grace Period:-
To avoid a lapse:
• Pay the missed premium as soon as possible.
• Use your insurer's mobile app or website for quick payment.
• Reach out to customer service if there are any payment issues.
What Happens If the Grace Period Ends?
If the grace period ends and the policy lapses, understanding what follows can help you take the right next steps.
1. Loss of Life Cover and Risk Benefits
Once the policy lapses:
• There is no active life cover.
• Any financial protection for your family under that policy is no longer available.
2. Revival Options for Lapsed Term Insurance
It is possible to revive a lapsed term insurance policy. Being aware of your options can make the process of regaining coverage easier.
Timeframe for policy revival
Do not worry just yet. You can revive a lapsed policy within a specific revival window, usually:
• Between 2 to 5 years from the date of lapse.
• This varies based on insurer terms.
Medical tests and declarations during revival:
When you apply for revival
• You may need to undergo additional medical tests.
• Fill out a health declaration to confirm no major health issues have occurred during the lapse.
Penalties or late fees
Reviving your policy is not always free:
• Late fees, interest on unpaid premiums, and penalties may apply.
• The longer you wait, the more the cost adds up.
Impact on premiums post-revival
• Your premium may increase.
• The insurer may alter policy terms, such as removing riders or reducing cover.
• It's always best to renew your policy sooner rather than later.
How to Avoid Missing Your Term Insurance Premium?
Prevention is always better than dealing with reinstatement. Here is how you can stay on top of your term insurance premiums:
Setting Auto-debit Mandates or Calendar Reminders
• Link your policy to auto-debit through your bank account or credit card.
• Set monthly reminders on your phone or calendar.
Using the Insurer's App or Customer Portal
• Most insurers now have user-friendly apps.
• Track due dates, receive alerts, and make payments with just a few taps.
Regularly Updating Payment Info
• Ensure your bank details are current.
• If your card has expired, update it immediately on the insurer's system.
Opt for Single Premium Term Insurance
• This single payment covers the entire term.
• There is no risk of missed due dates.
• You never face a policy lapse due to non-payment.
• Ideal for individuals with a lump sum to invest, seeking hassle-free long-term cover without the need to track payment cycles.
Missing a term insurance premium does not mean your coverage is lost, but it is a reminder to act fast. The grace period offers a second chance to pay without losing benefits. Even if that passes, you can still revive your policy with some extra steps. The smartest move is to pay on time. Use reminders and tech tools to stay on track.
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