Have you ever considered the consequences of not paying premiums on time for your life insurance policy? Insurers give a grace period of about a month, but if you do not pay even in that period, you will no longer be eligible for insurance benefits. In other words, your policy lapses. Mint Money advises caution in buying a life insurance policy. We prefer term plans, but often customers end up buying bundled products. So, when they skip paying premium, they not only forfeit the insurance cover but may also pay a huge penalty.
There are broadly three types of life insurance policies: pure term plans, unit-linked insurance plans (Ulips) and traditional investment cum insurance plans. Here’s when a policy lapses in each of these categories and your recourse.
