What happens if you do not pay or delay the next insurance premium?

If the client, due to financial problems or for other reasons, is unable to pay the next insurance premium (at the end of two years of the insurance contract), the insurer can offer him the following:

– provide an installment plan for the next installment;

– revise the terms of the Contract in terms of the amount of the sum insured, the term of insurance, the frequency of payment of contributions;

– reduce the sum insured, i.е. convert the Agreement to paid.

In this case, the latter option is automatically applied by the insurer if the client has not responded in any way to the insurer’s proposal or has not submitted a written application with his own proposals within a month from the date when the premium was to be paid.

In the event of a reduction in the sum insured, the Insured has the right to restore the initial sum insured subject to the payment of overdue insurance premiums and an additional insurance premium to compensate for the difference that has arisen in the mathematical reserve under the Policy due to the delay in the insurance premium.

If the sum insured is restored after 120 calendar days after the day when the premium was due, the Insurer has the right to demand new results of the medical examination of the Insured person and, based on the data received, set other conditions for restoring the sum insured.

The insurance contract can also be terminated at the request of the Insured (at the end of two years of the insurance contract), while he is paid a redemption amount, which is calculated mathematically on the date of termination of the contract. If the contract is terminated before the specified period, or if the insured fails to pay the next installment during such a period, the contract is terminated without payment of the redemption amount, since it is zero during the first two years of the contract.