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In term insurance, failure to pay the premium before the due date results in the policy lapsing, which forfeits your insurance benefits and the premiums paid so far. The policy is still in force during the grace period, and if anything happens to the insured, the nominee would still be eligible for the benefits.
How can I pay LIC premium after due date?
Visit the official website of LIC and select online payment – www.licindia.in/Home-(1)/Online-Payment. Enroll your policy and click on the link ‘Pay Premium Online’ to see a list of policies whose premium is due. You will be directed to a page where you can choose from different banks for payment.
What is a grace period in insurance?
A short period — usually 90 days — after your monthly health insurance payment is due. If you haven’t made your payment, you may do so during the grace period and avoid losing your health coverage.
What happens when a LIC policy lapses?
Revival Of Lapsed Policies If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy.
What happens if your late on insurance payment?
If you don’t pay by a specific date, an insurance company may send it to a collection agency, which can affect your credit score. You could take the step of cancelling your auto policy, but doing so may hurt you in the long run as some insurance companies may charge you a small penalty for cancelling prematurely.
Is there a grace period after Cancelling insurance?
If you missed your payment by a few days Many car insurance companies offer a grace period, which gives you some extra time after the initial deadline to pay your premium. Every insurance company has a different grace period, but it typically ranges from 10 days to 30 days.
Under a term insurance policy the policyholder is not under any obligation to pay the premium, unlike a credit card repayment or a bank loan. If you do not pay a term insurance premium, there will be no legal action taken against you. However, the policy that you took will simply get lapsed.
Does LIC allow grace period for paying premium without any late fee?
Yes, LIC allows a grace period of 30 days for paying premium without any late fee. However, if you are late by more than 30 days to 6 months, a late fee/ extra premium will be charged.
What is the grace period for an LIC policy in India?
LIC India provide you 30 days (30 days if mode of payment is Yearly/Half-yearly/Quarterly and 15 days if the mode is monthly) grace period to make policy premium payment without paying any additional charges. But if you have crossed 30 days you need to pay policy revival late fee.
What is delayed payment of premium in LIC policy?
LIC Delayed Payment of Premiums (Late Payment Charges) If the premiums are not paid within the grace period, the policy lapses. However the policy can be revived within the term of the policy subject to revival formalities being observed. If the premium due is not paid within the grace period, the policy is lapsed.
1. The grace period for policies where the premium payment mode is quarterly, half-yearly or yearly is 30 days and 15 days when it is monthly. If the premium under a policy is not paid within the days of grace the policy lapses.