Insurance Premiums

[blunomore]

Q for the insurance fundis:

If a person skips the payment of an insurance premium, the rule is that the insurance does not pay out should an 'event' occur, e.g. theft, loss, damage, death.

Do they send out notice to the insured informing her/him about the default? Do they persist until the arrears have been collected? Do they accept payment (whether by debit order or cash) of the next month's payment if there are still arrears?

Thanks

 

[Sackboy]

As far as I know if you haven't paid the premiums for, say 3 months, you haven't been insured for those months. It also means you can cancel and not have to pay for those months.

 

[davemc]

Depends on the companies invisible and ever changing policies.

 

[blunomore]

As far as I know if you haven't paid the premiums for, say 3 months, you haven't been insured for those months. It also means you can cancel and not have to pay for those months.

Explain this bit.

 

[syntax]

think of the absolute worst possible scenario and that is likely to be ur answer..

 

[blunomore]

think of the absolute worst possible scenario and that is likely to be ur answer..

 

[Sackboy]

Explain this bit.

We were in a position wrt householders insurance. They sent the bill to the wrong address and we didn't get it. We only pay annually, so it's easy to overlook it. Then we queried it and they told us we could cancel it and since we hadn't paid, we didn't "OWE" them for the 3 months outstanding as you would for, say, a cellphone contract.
(They were overcharging us by a long margin anyway)

 

[koeks]

i think insurance is prepaid... i think insurance rules always suit the insurers

 

[LancelotSA]

Q for the insurance fundis:

If a person skips the payment of an insurance premium, the rule is that the insurance does not pay out should an 'event' occur, e.g. theft, loss, damage, death.

Do they send out notice to the insured informing her/him about the default? Do they persist until the arrears have been collected? Do they accept payment (whether by debit order or cash) of the next month's payment if there are still arrears?

Thanks

I often see reference to "insurance" and am never sure whether the person is referring to short term insurance (ie vehicle cover, households contents etc) or long term insurance (ie life cover, disability cover etc). Usually when then reading the posts it refers to short term more often than not, as this is the one people have more of an issue with as it is a multiple claim type of cover. You are only ever going to claim life insurance once!

But now in this instance you have mixed the two, Blu, and it makes an answer difficult, as it is different for both, as well as from company to company I would assume.

I'll tell you about long term insurance with the company I am familiar with. Premiums are taken off in advance, as stated by someone else, so you pay on the 1st for the cover for that month. If you miss a premium for your life cover, disability cover etc you will be notified via sms, or email if it was provided, as well as snail mail, that you are in arrears. If you have a decent advisor he would also have been notified and should give you a call! In the sms, email and letter you will be advised to contact your advisor or make a payment to the bank (details provided usually). f you decide not to pay, you will still enjoy cover!

If the following month you again miss your premium, you will again be notified but you will now be informed that if payment is not made by about the 13th of that month your policy will then lapse and you will no longer have cover! Obviously if that date comes and you have not paid yet then this is exactly what will happen, you lose your cover!

 

[LancelotSA]

As regards short term insurance, I had a niggling in the back of my head that you would enjoy cover for 15 days but I was not certain, so I checked and found this :

Mashaphu says that, depending on the insurance company, just one missed payment can result in a short-term insurance policy lapsing.

“If your payment does not go through, for example a debit order is returned by the bank, your insurance company will try and debit your account again about 15 days later. If it is returned again, your policy lapses immediately. This means that you are no longer insured and your insurer will not cover any claims from that point.

“The good news is that if you have allowed your policy to lapse, it can be easily and immediately reinstated if you pay the outstanding amount. However, you will incur additional costs from your bank to cover the administration fees for returning the debit order and then re-debiting it later,” explains Mashaphu.

I think it is important to note the part that says "depending on the insurance company" in the beginning.

 

[blunomore]

I often see reference to "insurance" and am never sure whether the person is referring to short term insurance (ie vehicle cover, households contents etc) or long term insurance (ie life cover, disability cover etc). Usually when then reading the posts it refers to short term more often than not, as this is the one people have more of an issue with as it is a multiple claim type of cover. You are only ever going to claim life insurance once!

But now in this instance you have mixed the two, Blu, and it makes an answer difficult, as it is different for both, as well as from company to company I would assume.

I'll tell you about long term insurance with the company I am familiar with. Premiums are taken off in advance, as stated by someone else, so you pay on the 1st for the cover for that month. If you miss a premium for your life cover, disability cover etc you will be notified via sms, or email if it was provided, as well as snail mail, that you are in arrears. If you have a decent advisor he would also have been notified and should give you a call! In the sms, email and letter you will be advised to contact your advisor or make a payment to the bank (details provided usually). f you decide not to pay, you will still enjoy cover!

If the following month you again miss your premium, you will again be notified but you will now be informed that if payment is not made by about the 13th of that month your policy will then lapse and you will no longer have cover! Obviously if that date comes and you have not paid yet then this is exactly what will happen, you lose your cover!

As regards short term insurance, I had a niggling in the back of my head that you would enjoy cover for 15 days but I was not certain, so I checked and found this :



I think it is important to note the part that says "depending on the insurance company" in the beginning.

Thanks for the comprehensive answer !