General insurance What happens if you couldn't meet up with insurance premium

[Lens1000]

This is what happens if you couldn't meet up with insurance premium

I was wondering what will become of the benefits of the insured if he/she couldn't continue with the insurance premium. This could happen as a result of unforeseen events or financial challenges. The truth is that , when premium stops, the insurance policy lapses.

The available option is to cashout your savings and it could attract a penalty. The penalty could be certain percentage deductible.

You could also reduce the premium amount to what you can afford if you can't meet up with the initial premium agreed upon. The insurance will absorb this but benefits or claim will be reduced.

On a last note, there is no cause for alarm if you couldn't meet up with the insurance premium you bought due to financial instability. You can also talk with the broker to find a lasting solution.

 

[Wisdom01]

Yeah claims would be reduced , because the insurance company can't continue to cover the risk at the normal level after lowering your premium , they would have to do the necessary adjustments , I think they would probably do so , since they also don't want to make more loss too

 

[Mandy96]

Of course, insurance stops if the premium stops. There is no insurance without premium. To my understanding, premium is what validates your insurance policy plan. I think all of these would be stated in your insurance policy. The terms and conditions will be there so the insured would know better

 

[Good luck]

If one could not meet up with insurance premium,l think the company will withdraw the person plan or any policy between them.but before then the company will have send a lot of messages to notify them of the issues at hand and what to be done to rectify it before the company take any action that may not be suitable forthe insurer.

 

[Jamoflondon]

This is obvious that if the insured client could not keep up with premium pay, the insurance plan will not hold any longer. Looking at it, you will notice that it seems like the premium pay is almost the only way that any insurance company makes income so what do you think would happen if the client should stop paying the premium?

 

[Lens1000]

Yeah claims would be reduced , because the insurance company can't continue to cover the risk at the normal level after lowering your premium , they would have to do the necessary adjustments , I think they would probably do so , since they also don't want to make more loss too

We do not know what will happen the next minute. When calamity loom , and we could not continue with the insurance premiums. When this happens, you will have to contact the the broker and discuss the way out. It's either you terminate the policy or you pay lesser premium and ofcourse, this will attract a penalty.

 

[Lens1000]

Of course, insurance stops if the premium stops. There is no insurance without premium. To my understanding, premium is what validates your insurance policy plan. I think all of these would be stated in your insurance policy. The terms and conditions will be there so the insured would know better

To buy insurance policy, you must agree to pay premium. The premium paid depends on the type of insurance policy. So , If the insured stopped paying premium then the policy stops automatically. This is the more reason why you need to reach an agreement with the broker .

 

[Wisdom01]

We do not know what will happen the next minute. When calamity loom , and we could not continue with the insurance premiums. When this happens, you will have to contact the the broker and discuss the way out. It's either you terminate the policy or you pay lesser premium and ofcourse, this will attract a penalty.

The problem is that the person might be facing financial difficulty and if the payment for the premiums is reduced, the person might still find it hard to pay for the said insurance policy ,so some would just rather choose to terminate the contract and let every thing settle after contacting the broker for everything

 

[Alexandoy]

What I know here is that the insurance company or the agent will inform you that your policy will lapse when you do not pay 2 installments. The option you have is to pay the arrears or to withdraw the policy. You cannot get all the principal (premiums that you paid) but at least you get a portion of your invested money in the policy.