What happens if policyholder dies within grace period ?

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Do you know what happens when the policyholder dies within the grace period provided after the due date of paying the premium?

Every life insurance company provides a grace period of 30 days for paying the premium after the due date is over. Companies send reminders on SMS and emails to make sure the customer pays their premiums on or before the due date, but if they forget to pay the premiums on time, still they get 30 days of grace period. If premium are not yet paid after the grace period, then the policy is considered to be LAPSED and no death benefits will be given if the death happens after the grace period.

Do you get sum assured if death happens during grace period ?

And the answer is YES . As per the rules, if the death of the policy holder occurs on the due date of the premium payment or during the grace period, still the policy is valid and the beneficiaries will get the sum assured, but after deducting the unpaid premium for the current year.

So make sure you do not forget to pay your premiums and make sure you do not wait for the reminders from the insurance company. You can set up your own reminders and be more alert and proactive on this.

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