Payment of Premium for Insurance Coverage

Once the customer buy an insurance policy, he has to pay the premium amount on regular basis depending on the payment mode chosen by him. The available payment mode are:

1.    Single Premium – it is a lump sum premium payment for the whole short term coverage given and it is one time payment for the policy

2.    Annually

3.    Semi Annual

4.    Quarterly

5.    Monthly

To ensure the policy is in force which the coverage is given to the Life Insured, the customer has to remit the premium payment within 30 days grace period from the Next Due Date of the Policy. For example, if the Next Due Date of the Policy is on 01/01/2012, the customer can make the premium payment with 30 days from 01/01/2012. If the customer does not remit the payment within the grace period given, there are two (2) scenarios can happen:

1.    If the policy does not have the Cash Value, the policy status will be changed to lapse status. Once the policy status is lapse, there will be no coverage given to the customer.

2.    If the policy has the Cash Value, the Cash Value will be used to cover for the outstanding premium and will be used until it is fully exhausted. Once the Cash Value fully exhausted, then only the policy status will be changed to lapse. There will be no coverage given to the customer.

There are few payment method which available to the customer to make premium payment to the insurance company:

1.    Auto Debit

2.    Credit Card

3.    Internet Banking

4.    FPX

5.    Salary Deduction

6.    Biro Perkhidmatan Angkasa

7.    Standing Instruction

8.    Cash

9.    Cheque

You have to check and get the advice from the insurance company where you buy your policy on the availability of Payment Method Facility and the best payment method for your policy, so that, it will ensure the policy is in force all the time until maturity or expiry date.