4 ways you can make sure your insurance cover doesn’t fall off

Insurance Cover

When it comes to “term insurance,” the word “lapse” is not a good thing to hear. What does expiration of team policy mean? Simply put, if the term of the fixed-term insurance plan has expired, it means that the policy is no longer valid and you are not covered and protected.

No one wants to lose out on the benefit of insurance coverage after investing in a term plan. It is detrimental to the financial well-being of the family. To avoid invalidating your policy, here are a few things you can do:

1. Make your installment payments on time

The best way to ensure that fixed-term insurance coverage will never fall out is by making payments on or before the due date. In the event that you are unable to repay by the due date; Insurance companies give you a grace period, during which time you still have the option to pay your outstanding premiums. However, it is better to be early than to be sorry.

2. Set up automatic invoicing (ECS) for the term insurance policy

Failure to pay one premium payment can result in the expiration of your insurance policy. This mistake can be crushing on you, as you will lose all the benefits of the policy and also all the previous premiums you have paid. The insurance company may also ask you to go through a more detailed process to revive your policy, such as a medical exam and resubmission of documents.

Yes, we agree that it is possible to forget when a premium is due considering your busy schedule. But one way to make sure you’re not is to adopt ECS Premium Payment mode. With this option, your premium on the specified due date is automatically deducted from your bank account or credit card. The process is fairly simple, and can be done online by setting up a standing instruction on your credit card or submitting an automatic payment form with your bank details at the nearest branch. You can now also choose e-NACH, which is a process for setting up payments from your online bank account if your account is linked to your Aadhaar.

3. Update your contact details

While purchasing the insurance policy, you are required to provide your contact details to the insurance company. This includes your permanent address, current address, postal address, email ID, phone number, etc.

With these details, the insurance company sends you emails, text messages, premium reminders, etc., which can include premium payment reminders.

Therefore, if there is any change in these contact details, it is recommended that you update it with your insurance carrier. This will ensure that you get timely reminders and pay your installments on time or in advance. This update can also be done online by logging into the Customer Portal.

4. Be aware of your payment possibilities

Before you buy a term insurance policy, make sure you are aware of your payment capabilities. For example, choosing to pay a lump sum premium that can cause a hole in your pocket is never a good idea. Researching options such as monthly or quarterly payments can be a smart move, ensuring that you don’t run into financial stress while paying your premiums.

Some additional tips:

  • If you receive a letter from the insurance company, do not assume that it is only an advertisement. May be a notice before your policy expires
  • We also recommend that you open all emails from your insurance company as soon as you receive them. You may think it’s not important, but you never know, it could be a notice of a missed premium payment or something else related to your policy
  • If you have entered a grace period or the grace period has expired, return your policy as soon as possible
  • Returning the term insurance policy will be less expensive. It will also prevent you from having to go through the underwriting process and medical examination again

conclusion:

Missing annuity payments means letting your policy expire; Where coverage may not be active or may be reduced (as per policy terms and conditions).

However, regular and orderly payment of premiums will ensure the financial protection of your loved ones during an unfortunate event. That’s why you bought term insurance in the first place, isn’t it? So, pay your premiums regularly and be protected!

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