A model regulator of a secure and developed insurance industry

WHAT HAPPENS TO MY POLICY IF I FAIL TO PAY INSURANCE PREMIUMS?

Failure to pay insurance premiums as stipulated under the contract is a breach of policy terms and leads to termination of the contract by the insurance company.

If it is a life policy, the policyholder can claim for surrender proceeds. The period or term before surrender varies from company to company.

If one fails to pay premium before the surrender period, the policy lapses and no refund is given to the policyholder. But if the policyholder fails to pay premium up to or after surrender period, the policyholder can either get surrender value or the policy can be considered as paid up for a lower sum assured.

1 comment

  1. What happens If one fails to pay SOME of premium for LIFE before the surrender period?

    Does one loose all the premium SO FAR paid ?

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