This bonus is generally dependent on the performance of the insurance company and based on the loyalty shown by the customer
by paying all premium on time during the tenure of the policy.
By doing so, they can be protected from having their life insurance policy cancelled because he or she did
not pay a premium on time.
In case if the insured fails to
pay the premium on time then they can pay the due premium under the grace period of 30 days offered by the insurer.
Payment Options — Consider setting up automatic payment of your policy premiums from your savings or checking account so you do not
miss paying your premiums on time.
It is very important to
pay the premium on time because the claim benefits that you will receive or your beneficiary will receive greatly depend on the payment you make.
In the case of premium payment term more than 20 years, the surrender value gets enabled once the policyholder completes 2 years
by paying his premiums on time.
Just keep in mind that even though you have coverage and have
paid your premiums on time for years, your insurance company can still decline to renew your coverage when your policy expires.
However, sometimes the premium amount may appear as burden owing to the situations like loss of a job or during a medical crisis which restricts your finances and may stop you
from paying the premium on time.
Other common discounts
include paying your premiums on time, as well as good credit history — if you do not have any credit, then taking out coverage can be one of the many steps you can build it over the course of several months.
The reasoning for this is that your credit score is a representative of how dependable you are in financial situations, including such things
as paying your premiums on time, maintaining the required coverage, and taking care of your vehicle.
Grace Period: If the insured fails to
pay premiums on time then a grace period of 15 days if provided by the insurer, under which they can un-due the premiums.
It is given at the discretion of the company and generally declared to show the insurer's appreciation of the individual continuing with the policy and
paying their premium on time over all these years.
By paying your premiums on time by the due date, you are acting favorably in the eyes of your provider, and the Columbus company is more likely to give you good rates in the future.
As long as you continue to
pay the premium on time, your rate and death benefit are locked in and guaranteed to stay the same.
To make things easier, we offer you the option to choose any Auto Debit Facility that will
pay your premiums on time.
Therefore,
paying your premium on time can actually save you some costs.
Your coverage is guaranteed renewable to the policy's termination date as long as
you pay the premium on time.
Paying your premium on time and in full is necessary to ensure that the insurance company does not drop your coverage; so long as you do so, your policy will remain intact.
Not only this - but customers with a better credit score are more likely to
pay their premiums on time.