What are the consequences for not paying life insurance premiums?

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Karolina Grabowska/pexels.com
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Conclusion of a life insurance contract obliges us to pay a regular monthly premium, which is one of the basic conditions of the contract. Significant delays, as well as complete ignoring of the payments, may result in a call for payment, then suspension of insurance coverage, and finally termination of the contract by the company.

Life insurance, why do some people not pay premiums?

All details regarding the payment of premiums are determined when choosing life insurance, usually a monthly payment is offered. Signing a contract commits you to ongoing payments that must be paid on time. If we forget about it or do not pay it at all, we may suffer negative consequences and end up terminating our life insurance contract, which is a guarantee of our security.

Non-payment of premiums is an affliction of many people who fail to fulfill the contract through the influence of various factors. Excessive duties, absent-mindedness, life problems, financial shortages, health problems – these are just a few circumstances that have a passive influence on the issue of regular payments. Nevertheless, regardless of the situation, it is worth keeping in mind the regularity of payments. If an event occurs that makes it completely impossible, it is best to decide for a temporary suspension of fees or reduction of the premium amount.

Life insurance policy – what to expect in case of non-payment?

Delaying the payment for a few days, with the fact that it is a one-time situation, should not make us worry, because each insurance company sets a period in which you can settle the financial debt without any consequences. The standard period is 30 days, after which the insured is sent a letter of request for payment, which must be made within a week, otherwise the insurance becomes void. It is worth remembering, however, that the suspension of coverage does not mean the termination of the insurance contract, because after the debt is paid the coverage automatically becomes active again and you are fully covered. However, if an accident or other injury occurs during the suspension of coverage, no money will be paid to us. Non-payment of premiums for a grossly prolonged period will result in termination of the contract, in which case the insured loses coverage, rights to damages and collected funds. You can also read about non-payment of premiums and the consequences at https://www.rankingubezpieczennazycie.pl/b/nieoplacenie-skladki-ubezpieczenia-na-zycie-co-wtedy/116.html

When does the insured not have to pay the premium?

There are several exceptional situations in which the insured does not have to pay the premium in accordance with the current contract. These include serious illness of the insured, severe disability of the insured and inability to work. While these events are not pleasant, none of us can predict the future, and it is good to know your rights and options. In this case, our premiums will be paid by the insurer, and when needed, the payment of the entire amount guaranteed in the contract will be realized. However, in order for everything to go well, it is necessary to present the appropriate documents regarding the difficult life situation, such as a medical certificate or medical records that detail the course of the disease.
In order to make a good choice of life insurance that suits your needs and financial possibilities, it is worth reviewing the life insurance ranking at www.rankingubezpieczennazycie.pl.

Main photo: Karolina Grabowska/pexels.com

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