How to revive your expired insurance policy
When you buy an insurance policy, you have to pay a certain amount of premium each year up to the term of the policy. If for some reason you are unable to pay the premium due on time or within the grace period provided by the insurer, your policy lapses. However, there is an option to restore your expired policy and make it active again.
Let’s take a look at how you can restore an expired insurance policy.
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When you don’t pay the insurance premium, your policy rolls over with a 30-day grace period. During this period, the insurer is still responsible for paying the death benefit to the nominee, if a valid claim is made. However, if the policyholder dies after the end of the grace period, no death benefit is paid to the nominee. This is because the policy lapses or becomes inactive once the grace period has ended.
If insureds wish to reactivate their expired policy, they can do so through the reinstatement process which only works when the policy grace period has expired and the contract between the insured and the insurer is no longer. valid.
Naval Goel, founder and CEO of PolicyX.com said reinstatement is the process of renewing the expired policy in the middle of the plan to resume effective coverage. The policy is terminated due to non-payment of the premium which may arise for various reasons, either due to financial constraints, investment in the new policy, etc.
“However, there is a provision to reactivate the existing policy with the same provisions. The maximum grace period for reinstating the policy is 2 years when the insured has to pay within the given period from the time of the last payment. The insured will have to pay the entire amount of the premium pending the duration of the non-payment as well as certain additional charges levied by the insurance company. “
The reinstatement process works differently depending on the type of product and the cost of insurance etc. In some cases, some insurance companies may require the policyholder to submit a new health check-up to reassure their health details.
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