I took a life insurance policy last year. Since there was no reminder from the company or the agent, I forgot to pay the premium this year that was due in June. Will my policy be cancelled or will they take a late fee and let my policy continue?
Any insurance policy lapses if the due premium is not paid within 6 months of the date when the premium became due
I took a life insurance policy last year. Since there was no reminder from the company or the agent, I forgot to pay the premium this year that was due in June. Will my policy be cancelled or will they take a late fee and let my policy continue?
Suresh Iyengar, Bangalore
It actually depends on the terms of the issue of the policy. Generally speaking, any insurance policy lapses if the due premium is not paid within six months of the date when the premium became due. In your case the premium is late by about three months. You should approach the policy issuing office and get the figure of total amount due as on date along with the interest. On payment of the dues, your policy will be regularised.