Life insurers offer different terms and conditions on their policies. Some companies offer grace periods to give you some time to pay the premium and renew your policy. This period can range between 3 days and 30 days. Some companies impose a late fee for using the grace period.
Not all companies offer this period. If you do not have a grace period, then your policy will expire on the due date. In case you are granted a grace period, be sure not to overuse it or take advantage of it. Use it only when you absolutely need it.
If you are renewing your policy after the due date, here are some pointers:
• Ensure you have a grace period. Ask for this information from your agent or insurer.
• Be aware of fees and charges for using the grace period.
• Making late payments can disrupt your future payment schedule.
• You may face issues with renewing your policy if you consistently pay during the grace period.
• When you are renewing your policy, ensure you have paid all dues including late fees.
• Also make sure any changes that have to be made to your policy is done accurately.
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