What happens if I can't afford to pay premiums for a while?
It is really important that you keep up to date with your premium payments or your policy will lapse, which means that you will no longer have insurance cover.
Most policies offer a short 'grace' period of at least 30 days, so if you miss a single premium payment you have a few weeks to catch up. Beyond that, if you fall behind with your payments your policy will expire and you will be uninsured. If this happens and you still want insurance you will have to apply for a new policy, with terms and premiums based on your health and circumstances at that time.
In rare cases, on some policies, insurers offer a one-time 'premium holiday' option. This allows you to take a break of an agreed period (up to a year) during which you will pay no premiums. After this time you can reinstate the policy without having to provide new medical or financial data, simply by paying premiums again. You will generally only be able to do this once during the life of your policy.
It's important to note, though, that you will not have insurance cover during this break - so if anything happens while you are not paying premiums you will be unable to make a claim.
Contact a 1300 Life Insurance Advisor Today
1300 Life insurance have access to the full range of Life Insurance available from all Australian life insurance companies. Our advisors use sophisticated analysis to evaluate the features and benefits of each product against your own needs. Our duty of care is to always act in your best interest. We will:
- Assess your needs
- Make an unbiased recommendation
- Provide you with a written statement of advice
- Ensure your cover is properly implemented
If your interested in Life Insurance, please complete an enquiry form and our advisers can get in touch with you. Alternatively you can also phone 1300 543 346 during business hours.