Have you purchased any life Insurance in Ontario?
You must be aware of the fact that the premium or installment should be done on time. In case you miss any installment to pay, you will receive a notification mail/ message or call for the delay. If you do not revert the email, the insurance agent or broker will try to communicate with you to receive the installment or know the real reason for the premium installment delay.
Different premium policies (life insurance in Ontario, critical illness insurance in Ontario)are designed under different terms and conditions so the delay may occur problematic or by god’s grace, you can get away to deal with this positively.
Working of difference Life Insurance investment
Life insurance is basically of three types: term/ permanent(universal/ whole). In each of them, the policy lapse risk factor is significantly different from the other.
In terms of insurance plans, the delay of the premium may put you in a troublesome situation. If you deposit the premium every quarter or yearly basis, do it attentively.
Many insurance companies offer a time interval(grace period) to pay the premium installment so you can secure the policy from the lapse.
Once the grace period is over, the policy will also expire as well as its benefits.
Restore the policy coverage with premium interest
The situation can arise before anyone, to restore the policy benefits you need to pay the interest to the lapsed premium amount. You can also get new coverage but the premium installment can be expensive.
Restoring a policy seems the same as buying new coverage. For this, you need to contact the policy agent or broker for the application process of the policy and share all the information related to your health, personal, and financial state. If the insurance provider finds anything false the policy can be canceled by the provider.
Represent the medical reports, statements, blood reports, or other health-related reports or if required you may need to go through the medical test. If you are not fit by health and age is not a factor your premium will last for a predefined period. The increment of insurance premium rates continues every year by 6%.
Verify your contact information
You should be in reach with the insurance policy provider. If at some point you get a new number or change your address, inform the insurance firm to stay connected. It will help you to access the benefits of new plans and policy benefits. It will help to overcome the doubts and queries.
Pay extra to the defined premium amount
When a policy broker or agent comes to you to share the information of any kind of insurance plan he shares how much minimum premium you need to pay to secure a policy. To manage the premium lapse you should pay more than the minimum.
Change the type of payment
Some insurance plans like Uniform Life Insurance allow you a flexible payment options facility if you pay the insurance bills annually, you will get extra credit benefits.
Eliminate child riders
The insurance is provided to cover the life and to support your beneficiaries. If your child is also a beneficiary you can remove them and it will reduce the premium cost amount easily. If you can manage the funeral expenses from other sources no need to keep the multiple riders.
Have an additional plan
In our life, things are unpredictable. In case of any financial crisis or financial responsibility and expenses, you may miss the premium payment. You should have an additional arrangement to manage this situation. Whether you save or deduct by cheques or cash if the requests are declined by the bank you may have to deal with penalties. You can get information on automatic withdrawal or liquidation from your financial advisor.
Don’t be restless with the premium policy lapse situation, you may ask the financial advisor or insurance agent for any additional queries of different policy plans. They will make things easier for you. Whenever you choose the insurance plan (dental insurance in Ontario, life insurance in Ontario) please ask these things also so you can be mentally prepared for such events and protect the policy from cancelation situations and the amount you paid can allow benefits.