Skip to main content
  • Search
  • Home
  • Our Products
    • Protection
    • Health
    • Savings
    • Wellness Series
    • Insurance with investment
    • BPI-Philam Direct
    • Partnership Insurance
    • Corporate Solutions
  • Key Moments
    • Building My Wealth
    • Getting Married
    • Becoming A Parent
    • Working Abroad
    • Planning For Retirement
    • Running A Business
  • About Us
    • Our People
    • Media Center
    • Corporate Governance
    • Our Commitments
    • Events & Promotions
    • BPI-Philam and You
    • Careers
  • Claims & Support
    • Contact Us
    • Frequently Asked Questions
    • BPI-Philam Funds
    • Payment Facilities
    • Forms Library
    • Claims Guide
  • My BPI-Philam
    • Bancassurance Portal
    • ePlan
    • REQUEST E-PLAN ACCESS
    • Bancassurance 101
BPI-Philam
BPI-Philam BPI-Philam
  • Our Products

    Our Products

    Find a life insurance plan according to your needs

    SEE MORE

    For Individuals

    For Corporations

    • Protection

      Put yourself at ease by protecting those you love

    • Health

      Protect yourself from unforeseen medical costs and focus on getting better

    • Savings

      Make saving for the future within your reach

    • Wellness Series

      Protection solutions that reward your healthy choices

    • Insurance with investment

      Make the most out of your hard-earned money

    • BPI-Philam Direct

      Affordable protection products readily available

    • Partnership Insurance

      Affordable insurance to protect yourself and your family

    • Corporate Solutions

      Protect your company's best assets

  • Key Moments

    Key Moments

    Where are you in life's key stages?

    VIEW ALL KEY MOMENTS
    • Building My Wealth

      Setting yourself up for success

    • Getting Married

      Embark on a beautiful journey as husband and wife

    • Becoming A Parent

      Preparing your child's future

    • Working Abroad

      Setting aside in order to come home for good

    • Planning For Retirement

      Having time to do things that you have always wanted to do

    • Running A Business

      Take care of your most important asset

  • About Us

    About Us

    BPI-Philam is a partnership of financial icons

    Know more
    • Our People

      The foundation of our success

    • Media Center

      News and information about BPI-Philam

    • Corporate Governance

      ASEAN Corporate Governance Scorecards

    • Our Commitments

      Partnerships and community initiatives

    • Events & Promotions

      Here’s what’s happening in BPI-Philam

    • BPI-Philam and You

      Our Customer Newsletter

    • Careers

      Explore opportunities to bring real ambition to life

  • Claims & Support

    Claims & Support

    We strive to provide the best service for our customers

    Contact BPI-Philam
    • Contact Us

      Cannot find the answer in our FAQ section? Contact us now

    • Frequently Asked Questions

      Have a question? You may find the answer here

    • BPI-Philam Funds

      BPI-Philam and Ayala Life Funds Information

    • Payment Facilities

      We make it easy to pay your premium. Choose the best payment option for you.

    • Forms Library

      A selection of forms you can download, fill in and send back to us

    • Claims Guide

  • My BPI-Philam

    My BPI-Philam

    Access your BPI-Philam accounts

    • CUSTOMER

      ePlan Customer Portal

    • BSE

      Bancassurance Portal

    • Bancassurance 101

      BPI-Philam is the number one bancassurance company in the Philippines. Find an affordable life insurance product in 800+ BPI branches nationwide.

  • Search
  • Contact Us
    • Call Us

      Open: 8am to 5pm, Mon - Fri

    • Leave Us a Message

Finance and Insurance
Prev | Next
Back to Top
  • {{title}}

    {{label}}
  • What Happens If I Fail to Pay My Insurance Premium?

    10 March 2021


    What Happens If I Fail to Pay My Insurance Premium?

    If you have insurance, then you know how important it is to pay your premiums. One of the reasons you get life insurance is to free yourself from worries, but failing to pay your premium can be the source of it.

    Life may throw some unexpected jolts that cause you to miss a payment, such as the unprecedented global pandemic that put many people's lives on a tailspin. Those who are greatly affected by such circumstances could have had trouble paying their insurance premium.

    But what really happens when you miss your insurance premiums? Many factors are involved, and we will talk all about it below, along with a few tips to ensure you won't miss another payment again.

     

    What Happens If I Fail to Pay My Insurance Premium?

    There are four standard payment schedules for insurance premiums: monthly, quarterly, semi-quarterly, and annual. Whether it's VUL insurance or health insurance, there will be consequences for missing this schedule. Here's what's bound to happen when you miss paying your insurance premium.

    ●  The insurance company will give a grace period.

    When you miss your premium, you don't instantaneously lose your insurance coverage. There's a grace period of usually one month (depending on your policy and insurance provider) that allows you to pull your account back to good standing without any additional charges to renew the policy.

    ●  Loss of insurance coverage.

    Once the grace period is over, and you still haven't paid the premium, that's when the policy will lapse, and you lose your insurance coverage for the term insurance. If you have a permanent insurance policy, there are a variety of options, the policy account value may be applied to the premium, cash out the policy, reduce the death benefit (no cash saving), convert the permanent policy to a term policy for a while, or let it lapse. If the policy lapses, you can reinstate it and pay back the premiums plus interest.

    Different treatments depend on your type of insurance.

    o   Those with cash values (VULs or insurance with investment)

    In case the policyholder forgets to pay their premium on the due date, their plan will not lapse immediately. Instead, the system will deduct the premium amount from the investment fund value sans late fees or penalty charges.

    o   Those without cash values (life or health insurance only)

    If you fail to pay your premiums within the grace period, you will lose your insurance coverage. But there is hope: your policy can be revived. Most insurance providers allow reinstatement within two years of the lapse. You're required to compensate for the unpaid premiums, cover the penalty fees, and go through a medical exam to prove you're in good health.

     

    How to Avoid Missed Insurance Premium Payments

    1. Pay annually, if possible

    As you now know, missing one payment and failing to pay within the grace period could cost your term policy. To avoid missing payments altogether, opt to pay annually. That's just one payment to remember per year, so the chances of you forgetting your due date are reduced significantly. Plus, you get to prioritize your financial obligations over unnecessary expenses.

    2. Always set reminders for payment dates

    Whatever payment plan you choose, make sure to set reminders for the due dates. You can make a reminder on your phone calendar, jot it down on your planner, or write a note and stick it on your fridge to ensure you don't miss the deadline. It's better to set multiple reminders to keep it on top of your mind than none at all.

    3. Make premiums auto-debitable to your account, if possible

    If your bank account allows, automate the payment by setting up an electronic fund transfer. Some insurance providers allow automatic payment options, so see if it's something you can set up to help prevent you from missing insurance payments.

    4. Create a separate account for premium savings accounts

    If you use several savings accounts for your different savings goals, why not set up one for your insurance premiums? Creating a separate account dedicated to your premiums allows you to keep your finances organized and your premiums on your radar.

     

    Preserve Your Peace of Mind

    Whether you have a term or permanent insurance policy, this is one of the things that lets you and your family sleep peacefully at night. Having a cushion to rely on in case anything unforeseen happens to you is well worth preserving. Keep this in mind whenever you budget your finances or when it's time to pay bills.

    You may review your policy document or ask your insurance provider about the grace period and other related concerns about missed payments. It's essential to familiarize yourself with the consequences and options if you fail to cover your premium. Of course, you must do everything you can to avoid going down that road.

    Are you shopping for an insurance policy? BPI-Philam makes it easy, fast, and convenient to get insured amid the pandemic. Feel free to schedule a virtual appointment with our Bancassurance Sales Executives to learn more! 

    CONTACT BPI-PHILAM

    (02) 8 5285501

    FACEBOOK MESSENGER

    15th Floor BPI-Philam Life Makati (formerly Ayala-FGU Bldg) 6811 Ayala Avenue Makati City 1226

    CONTACT BPI-PHILAM

    (02) 8 528 5501

    FACEBOOK MESSENGER

    15th Floor BPI-Philam Life Makati (formerly Ayala-FGU Bldg) 6811 Ayala Avenue Makati City 1226

    GO TO

    PHILAMLIFE.COM

     

    BPI.COM.PH

     

    AIA.COM

      

    Explore BPI-Philam

    Our Products

    Key Moments

    About BPI-Philam

    Who we are

    Our People

    Media Center

    Careers

    GO TO

    Philam Vitality

     

    Philamlife

     

    BPI

     

    AIA.COM

    Learn more about AIA Group

    EXPLORE BPI-PHILAM

    Our Products

    Key Moments

     

     

    ABOUT BPI-PHILAM

    Who we are

    Our People

    Media Center

    Careers


    Copyright 2016. AIA Group and its subsidiaries. All rights reserved.
    Terms of Use | Privacy Statement | Cookie Policy

    This website uses cookies for the purpose of enhancing your user experience. You can find more information on the types of cookies we collect, what we use these for, and how to manage your cookie settings in our Cookie Policy and Privacy Statement.