I have paid my life insurance premium during the grace period offered by insurer. Does it affect the risk cover under the policy?
Abhijit Patel, Baroda
Every life policy states the dates on which the renewal premium is payable. The policies also provide for a grace period for payment of premium. It is different for different modes of premium payment. The period is normally one month where the premium payable is yearly, half yearly and quarterly. It is 15 days in case the premium is payable on a monthly basis. During the grace period, the policy remains in full force, even if the due premium is not paid.
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Also, there is no additional interest charged on the premium paid during this time. Even in the case of a claim, on account of death of the insured during the grace period, the claim is payable in full. However, it is subject to deduction o f the unpaid premium amount.
