Being a Financial Adviser, I recommended all my followers in all my articles in financial control.in to pay the installments like EMI’s, Bills of Credit Card, Electricity Bills, Mobile and most important Insurance premium on time. What happens if your premium is gone unpaid. The Unpaid Insurance premium will take you to grace period like 15 days to 30 days according to the Insurance company policy.
If the Premium is not paid under grace period the Policy is treated as a lapse of the policy and you will not get the benefits.
Question is :
The Implication of Death During Grace Period
Eventually, still, the question remains the same, what happens in case of Death during Grace Period. It is very clear that the policy is still live and the Insurance company reminding the policyholder through calls, Emails or SMS for the renewal of the policy.
According to the Law, the Policyholder will get all the benefits if the death occurs during the grace period of 30 days, even if the premium is unpaid. The only difference is, the Policyholder will get the Sum assured after deduction of the Premium amount.
If a Person is holding a Term Plan of ₹ 1 Crore for 20 years, he is paying the premium of ₹ 12000 on dated – 22nd January every year, according to the grace period of 30 days, he is liable to pay the premium up to 22nd of February, if the death occurs on dated – 10th of February then his family is paid the amount after deduction of premium amount.
Insurance Policy Awareness
however there are a lot of policyholders and their family how are not eventually aware of the law, and they do not fill the claim. It is also written in the Policy about the condition. There are lots of Insurance companies in the segments like HDFC LIFE, LIC E term, Bharti Axa.
You can also refer
For more articles please refer
- Public Provident Fund Account (PPF)
- Is Term Insurance better than Life Insurance