Premiums: when and How to pay?

Generally, Canadians and Americans pay their life insurance premiums monthly by direct debits into their bank account. The premiums payment may also be paid annually, semi-annually or quarterly.

You can also concentrate premium payments over a certain number of years. Your premiums will be then a little higher, but your policy will then be free of any charge. This is the case for example, if you want your permanent life insurance policy to be fully paid at age 65 so you will no longer have to pay any premiums after retirement.

WHAT IF I CAN NOT PAY THE PREMIUMS ANYMORE?

You have a 30 days grace period after the due payment date. If the premium is not paid at the expiration of this period, your life insurance is broken with complete revocation of all the benefit. If death occurs during the 30 days grace period, the principal sum is paid after deduction of the suffering premiums.

But if you choose, a redemption value life insurance police then it can help you keep your life insurance valid even after your police fell for revocation. You may re-enacted your life insurance within two following years, if you pays the suffering premiums, increased interest, and submit medical evidence to justify the non payment period.