Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What Happens If You Stop Paying Premiums of Life Insurance?

If you miss life insurance premium payments, your policy could be cancelled. Read more to know about what happens if you stop paying your insurance premium?

  • Oct 29, 2021
  • 2,657 Views

A life insurance policy is a failsafe way to guarantee your family’s well-being. In essence, an insurance plan is a contractual agreement between you and your insurer that specifies that if you die, the insurance company will pay a lump sum to your nominees, ensuring a peaceful life for them.

Your insurer pays you as per your insurance plan, but only after you make all of your life insurance policy premium payments. Therefore, it is advisable to plan insurance carefully, keeping all possible factors in mind to make consistent premium payments. A single premium life insurance entails paying a lump sum amount. If you opt for monthly, quarterly, or half-yearly insurance premium payment mode, you can spread out your premiums at chosen intervals throughout the term period. Therefore, it is imperative to plan thoughtfully before purchasing a life insurance policy.

Premium Payment Failure and Its Repercussions

A failure at your end to make the life insurance premium payment will result in a policy lapse. However, a term life insurance policy gives you a grace period that usually lasts 30 days, to complete the pending payments.

Reinstating or Restoring a Lapsed Policy

Once your insurance has expired, it could be a tricky road ahead. There is, fortunately, a way to reinstate or restore the expired coverage. This method differs from one insurer to the other and is determined by the type of policy.

To reinstate/restore a policy, you should consider the following:

  • Reinstatement Form
  • If you wish to reinstate a lapsed policy, you should fill out the reinstatement application. It’s identical to the application you filled out when you originally applied for the insurance coverage.

  • Medical Examination
  • This differs considerably depending on your insurer. However, in most cases, if your reinstatement application is submitted within 90 days of the grace period’s completion, you do not require medical examinations.

  • Latest Health Condition
  • Most firms will inquire about your existing health situation. In addition, they intend to evaluate if anything has altered since you submitted your initial application.

Avoid Premium Payment Failure with These Steps

Life insurance policy premium payments are a full-time commitment and an important element of your financial plan. To prevent payment failures, one must understand how to plan insurance.

  • Decide On the Type of Coverage
  • Planning for insurance starts by researching the type and form of coverage you require. A full coverage insurance plan is the best option for individuals with significant financial resources as it usually comes with higher premiums. However, you also have an option to buy a minimum life insurance coverage policy. In fact, ‘what is the minimum life insurance policy is a frequently asked question. This type of plan provides coverage for a period ranging from 5-20 years, resulting in reduced monthly premiums.

  • Automated Payment System
  • Choose an automatic payment method that pays your monthly insurance premium on time, so you don’t have to worry about missing the payment deadline.

There’s no denying that timely premium payments are critical to ensuring the continued safety of you and your loved ones. However, if you miss a life insurance premium payment, you get an opportunity to make up for the delay during the grace period. Therefore, the best approach to prevent such payment failures is to plan insurance thoroughly and learn how to plan life insurance most appropriately right from the start.

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to Use Different Types of Life Insurance for Retirement Planning?

Choosing Between Short-Term & Long-Term Insurance Plans

Most Common Life Insurance Riders to Enhance Your Existing Policy

Why Porting Health & Life Insurance after Marriage is Important?

Everything You Need to Know About Endowment Policy

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

What is Minimum Life Insurance Policy?

What Is Investment Insurance?

How Many Insurances Should I Have?

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

6 Things You Didn't Know Life Insurance Could Do

Difference Between Insurance and Assurance?

Health Insurance VS Life Insurance

NRI Premium Payment Options

Terminal Illness Benefit in Term Insurance

Think About Life Insurance Sooner than Later

Kotak Life Claim Settlement Ratio

Insurance and Endowment: Everything You Need to Know!

Beware of Phishing & Fraud Insurance Calls

Why Life Insurance is Always a Smart Decision?

Adding a Child to Your Life Insurance Policy?

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

Why do I Need Life Insurance?

Different Types of Insurance Policies in India

Whole Life Insurance Definition: How It Works, With Examples

5 Easy Steps to Buying A Policy

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

जीवन बीमा क्या है?

Always keep your Nominee informed

Does Life Insurance Policy Cover Covid Death?

Why Do Life Insurance Agents Avoid Selling Term Plans?

Best Insurance Plans in India

Advantages of Digitizing the Insurance Claims Process

When are Millennials required to take out a life insurance policy?

5 Common Life Insurance FAQs and Answers

Different Types of Protection Plans

How Does Life Insurance Work?

Life Insurance and Millennials

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Customer Awareness on Information Security

Benefits of Term Insurance for Senior Citizens in India

Difference Between Money Back and Endowment Policy

बीमा क्षेत्र में IRDAI की भूमिका

Does Family History Affects your Term Life Insurance Rates?

Is It Time to Review Life Insurance Policy of Yours?

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Role of Life Insurance in Your Financial Portfolio

Top 5 Common Life Insurance Myths and Facts

In India, should NRIs purchase life insurance?

What is the Difference Between Insurance and Reinsurance?

Role of IRDAI in the Insurance Sector

What Is Insurance Rider and It’s Benefits?

Why You Should Never Cancel Life Insurance Policy

Insurance vs Investment - Know the Difference

5 Things to Keep in Mind While Buying Life Insurance Policy

Health Insurance VS Life Insurance

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

Does Life Insurance Pay for Suicidal Death?

How do life insurance payouts work?

Guidelines for Linking Aadhar and PAN to Insurance Policies

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Different Types Of Life Insurance In India

9 Most Important Things You Must Learn About Paying Life Insurance Premium

All about Your Rights and Duties While Buying Life Insurance Policy

Life Insurance for Overweight Applicants

Loan Against Life Insurance Policy

जीवन बीमा पर ऋण

Benefits of Term Insurance with Critical Illness Rider

How Much Life Insurance Should You Have?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

What is Human Life Value (HLV) & How to Calculate it?

What is Insurance Premium? | Definition of Insurance Premium

Know the many types of life insurance policies in India

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Here's How to Choose The Tight Life Insurance

Life Insurance vs Mutual Funds

How Much Life Insurance Do You Need?

क्या जीवन बीमा एक निवेश है?

How Do Term Insurance Plans Differ for Smokers?

Life Insurance for Millennials

Important Life Insurance Terms You Must Know

6 Different Types of Insurance Policies

What happens to joint life insurance after divorce?

Why is Medical Test Important While Buying a Term Insurance?

Should You Buy Life Insurance After Getting Married?

Staying Insured While Investing

Do Life Insurance Premiums Increase Every Year?

All about IRDAI

Factors to Check Before Buying Life Insurance in India

All about Life Insurance Calculators

Life Insurance Beneficiary

Life Insurance vs. Death Insurance: Exploring the Key Distinction

What are robo-advisors in insurance?

Choosing a Life Insurance Beneficiary

Is Life Insurance For Millennials Really Needed?

भारत में जीवन बीमा पॉलिसियों के प्रकार

Types of Riders in Insurance Policy

Process of Filing A Claim For Life Insurance

How to Make Death Claims on Life Insurance?

Life Insurance Plans for Women

What is Human Life value and a Human Life Value Calculator?

Is Life Insurance Worth It?

How to Buy Life Insurance Policy Online?

FAQs on Life Insurance

Voluntary Life Insurance vs. Basic Life Insurance

Do Your Financial Planning with Life Insurance!

5 Reasons Why a Women Should Buy a Life Insurance

Invest in Insurance to Secure Your Future

Why Term Insurance for Women is Important?

Life Insurance Vs. Mutual Funds Investment

Is It Advisable To Have Multiple Life Insurance Policies?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

All About Life Insurance and How It Works?

Benefits of Gifting Term Insurance to Your Spouse

Know the many types of life insurance policies in India

How to Customize Your Life Insurance Policy with Riders

What are the Benefits of Endowment Policy?

Term Life Insurance vs Accidental Death Insurance

What Is the Procedure to choose a nomination in life insurance policy?

What is the process of reactivating lapsed life insurance policy?

How to Choose a Life Insurance Policy

Can a Term Plan be the Substitute for a Retirement Plan?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Key Things to Review in Your Life Insurance Policy Document

Why Your Family Should Know About Your Life Insurance Policy?

Choosing Riders for Insurance Plans

Can I Transfer My Term Life Insurance Policy to another Company?

What is Surrender Value in Insurance, and How is it Calculated?

Sabse Pehle Life Insurance

Do College Students Need to Buy a Life Insurance?

How to Choose Life Insurance for All Ages?

Nominee in insurance - A Complete Guide on nomination in insurance

Term Insurance Vs Life insurance: Small Details, Big Differences

How Much Term Life Insurance Cover Do I Need?

What is Life Insurance?

How to Choose the Right Term Plan as per Your Age

Details Required To Be Filled In A Life Insurance Form

7 Superficial Reasons People Avoid Buying Insurance Online

Want to surrender your life insurance policy? Here's a guide

Ensure Protection Against Death, Disease & Disability With Life Insurance

Backdating in Life Insurance: Should You Avoid it?

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

Compare Different Life Insurance Products Offered By Kotak Life

Important Terminologies of Life Insurance

Life Insurance with Money Back vs Without Money Back

What is Group Insurance?

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Life Insurance and Retirement Planning

What is Insurance Coverage? Overview, Types, and Examples

Digital Life Certificate for Pensioners Seeking Pension

Biggest Life Insurance Myths

भारत में गृहणियों के लिए टर्म इंश्योरेंस

6 Ways You Can Ensure Fast & Smooth Claim Settlement

What is the Difference Between Limited and Regular Pay Insurance Plan?

How often should I review my policy?

What is KYC - Meaning, Types, and Importance

What is Underinsurance & The Dangers of Being Underinsured

Single Premium Term Insurance: Meaning & Tax Benefits

What Is the Difference Between Group Term and Voluntary Term Life Insurance?

Life Insurance for Overweight Applicants

Why do most Indians choose the wrong way to buy life insurance?

Term Plan with Return of Premium (TROP)

What Should One Expect During the Medical Evaluation for Life Insurance?

Who Is A Nominee In A Life Insurance Plan?