Life is busy, and sometimes paying your term insurance premium slips your mind. But unlike your Netflix subscription, missing a payment here isn’t just an inconvenience — it could leave your family financially unprotected. In 2025, insurers in India have made premium payment reminders more tech-friendly, but the rules around policy lapse and revival are still strict.
This guide explains what actually happens when you miss a term plan premium, the grace period rules, and how to avoid losing your cover.
Quick Facts Table
| Stage | What Happens | Time Frame |
|---|---|---|
| Missed Payment Date | Policy enters grace period | Same day |
| Grace Period | Cover continues, but payment needed to avoid lapse | 15 days (monthly) / 30 days (annual) |
| After Grace Period | Policy lapses, cover stops | Immediately after deadline |
| Revival Period | You can reinstate policy by paying dues + interest + medicals | Up to 5 years (varies by insurer) |
What Is a Grace Period in Term Insurance?
A grace period is the extra time insurers give you after your premium due date to make the payment without losing your cover.
- Monthly premium mode: 15 days
- Quarterly, half-yearly, or annual mode: 30 days
Your policy remains active during this period, so if something happens to you, the insurer will still pay the claim — but only if the premium is cleared before they settle it.
What Happens After the Grace Period Ends?
If you don’t pay even after the grace period:
- The policy lapses — meaning your life cover stops immediately.
- If you die after this date, your nominee gets nothing.
- Riders (like accidental cover, critical illness) also end.
Reviving a Lapsed Term Plan
Most insurers allow policy revival within 2–5 years from the lapse date.
To revive:
- Pay all overdue premiums + interest/penalty
- Provide a fresh medical declaration (sometimes a full check-up)
- In some cases, pay revival charges
However, revival approval is at the insurer’s discretion — they can reject it if your health risk has increased.
Case Example
Ravi bought a ₹1 crore term plan with annual premiums of ₹12,000. His payment due date was 1st March 2025, with a 30-day grace period. He forgot to pay until 10th April — 10 days after the grace period. His policy lapsed. If he wanted to revive it in August, he would need to:
- Pay ₹12,000 (overdue premium) + interest (~₹400)
- Undergo medical tests again
- Wait for insurer approval
If he had died in April before reviving the plan, his family would have received ₹0.
How to Avoid Missing Premiums
- Enable Auto-Debit: Use NACH, credit card standing instruction, or UPI AutoPay.
- Set Multiple Reminders: Phone calendar, WhatsApp notes, email alerts.
- Use Insurer Apps: Many now allow one-click payments with instant receipts.
- Pay Early: Don’t wait until the last day — avoid banking glitches.
Why It Matters
Your term plan is the safety net for your family’s future. Even a short lapse can leave them financially exposed. Understanding grace periods, revival rules, and setting up auto-payments ensures your cover is never interrupted.
Protect your family’s future by keeping your term plan active — and share this guide on eBharat.com’s social media so more people avoid costly mistakes.
Internal Links:
- How to Choose the Right Term Insurance Plan in 2025
- 7 Mistakes Indians Make While Choosing Riders
- Should You Buy Term Insurance Without Medical Test?
