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Sunday, July 31, 2016

Life insurance: Premium payment options..!

Life insurance: Premium payment options..!

Life insurance premium is paid annually.

There is always a risk of the policy lapsing if the premium is not paid on or before the due date.

Life insurance companies offer a number of premium payment options.

One can choose the one most suited to one's working style.

1. Online

Log on to the insurance company's website and select online premium payment option. Policyholder will need to provide details such as PAN policy number.

On submission, the premium due is displayed. Payment can be made through net banking or debit credit card.

2. Auto debit

This is a hassle-free option wherein the policyholder places an auto debit instruction using one's credit card or registering an ECS NACH mandate with the insurance company.

Insurers also have tie ups to register auto debit instruction with the policyholder's bank or electronic bill processing entities. Once this instruction is registered, the premium will automatically get deducted on or before the due date.

Depending upon the mode opted, relevant form needs to be filled with cancelled cheque and submitted to insurer.



3. Branch / drop box

Insurance companies tie up with banks to offer cheque drop facilities. Third party payment can be made from the bank branch by filling up the NEFT, RTGS form.

Alternatively, the premium cheque can be submitted at the insurance company branch or can be handed over to the insurance agent.

4. By phone

Premium payment can also be done using the Interactive Voice Response (IVR) system by calling a designated phone number of the insurance company. Credit card details are required to be submitted to effect payment through this mode.


Points to note

* While making payment of premium online, it is important to save the online premium paid receipt generated soon after the payment process is completed.

* Online payment can also be made from the policyholder's bank website by entering bank details of the insurance company.

* Insurance companies also have drop boxes at prominent places where premium cheques can be dropped.

Courtesy : Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.


Life insurance: Premium payment options..! Reviewed by S. Chitra on July 31, 2016 Rating: 5 Life insurance: Premium payment options..! Life insurance premium is paid annually. There is always a risk of the policy lapsing i...

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