When you purchase life insurance, you are required to pay monthly or annual premiums in exchange for the insurance company assuming the risks covered by the insurance.
The premium is as explained in the post “Terms to Know Before You Buy Life Insurance” and the price you pay for your insurance.
Failure to pay insurance premiums on time can have serious consequences because we never know what will happen. If we forget to pay our life insurance premiums, we may lose our insurance coverage, and if something happens, our family will be lost.
What happens if I don’t pay the premium?
If you do not pay your life insurance premiums, it is against your part of the contract and the insurance company can cancel your coverage, so you will not be protected in the event of death or total permanent disability.
By law, if the first prize is not paid, the contract will automatically terminate. In other words, the risk of a life insurance contract will not be borne by the insurer until the first prize is paid, so if the first prize is not paid, the contract will be understood to be terminated at the same time. date signed.
In the event of non-payment when the following incentives must be paid, the contract will not be extended, so you will no longer have the life insurance active.
That’s why it’s important to check the expiration date of your life insurance and the date your premiums are due to prevent you and your family from losing protection in the event of negligence.
Your insurance company is responsible for paying you under your policy, but only until you pay your premium. If you stop paying your policy premiums, the insurance company’s obligation to pay you when you need it ends.
First, let’s understand what life insurance is. Basically, life insurance is a contract between you and your insurance company that states that if you unfortunately die, the insurance company will make a lump sum payment to your beneficiaries. Therefore, life insurance ensures that your loved ones and family members do not suffer financial loss after your death. This makes it clear that when you stop paying your life insurance premiums, you are putting your family at risk.
When does your life insurance policy expire?
When you purchase any type of insurance policy, you must pay the premium amount through the end of the coverage period. In return, the insurance company provides you with loss coverage in accordance with the terms and conditions of the policy. Therefore, your insurance policy may end when you stop paying your premiums or are unable to pay them.
Can I reinstate a life insurance policy?
You can’t be wrong if you think your life insurance policy can be reinstated after a cancellation if you don’t pay your premiums on time. However, this can vary from one insurance company to another and also in the terms and conditions of the policy. While most companies understand that their users may not always be able to pay their premiums, they still allow them to reinstate their insurance policies after termination.
You will have to pay penalties, renewal fees, late fees, etc., depending on how late you reinstate your policy. Insurance companies may also require you to undergo a medical examination and provide evidence of continued insurability.
