In a move aimed at enhancing customer convenience and security, term insurance plans have introduced two features: the Premium Holiday Rider and Premium Delay Plans.
These options are set to revolutionise the term insurance industry by allowing policyholders to maintain their coverage even if they miss paying their premiums for a year.
Rhishabh Garg, Head of Term Insurance at Policybazaar.com, emphasises the impact of these features. “We’ve seen that the fear of not being able to pay the insurance premium and the policy lapsing is one of the key reasons Indians hesitate to buy term insurance. To counter this, the industry has ingeniously introduced consumer-centric features like the Premium Holiday Rider and Premium Delay Plans. These features represent a positive shift that is being warmly accepted by customers, based on our observations”.
The Premium Holiday Rider is an optional add-on that can be selected at the time of purchasing your term insurance policy.By paying a small additional premium, you can activate this rider, which ensures that your policy will not lapse if you miss a premium payment in any given year. This rider offers a financial safety net, allowing you to navigate temporary financial difficulties without losing your valuable insurance coverage.
For those who prefer not to pay for an additional rider, Premium Delay Plans provide a built-in solution that ensures your policy remains active even if you miss a premium payment. These plans come with the feature included at no additional cost. If you are unable to pay your premium for a particular year, your policy will not lapse. You will simply need to pay the premium for the following year, along with the previous year’s premium. This built-in feature provides a straightforward and cost-effective way to ensure your coverage continues uninterrupted.
By addressing the common concern of policy lapses due to missed premium payments, these new options provide a safety net for policyholders, making term insurance more accessible and appealing.