You have options! Missing a payment doesn’t have to mean surrendering your life insurance policy.
We get it. The cost of living is going up and many are struggling to keep up with paying their bills. However, life insurance is a valuable tool to financially protect your family and, considering South Africa’s high levels of economic uncertainty, creating a safety net is a must. If you’re worried that you might miss a MiWayLife premium payment, you’ll be glad to know that doesn’t have to result in a policy lapse. Also, there are things you can do to reduce your premiums.
What happens when I miss a MiWayLife premium payment?
When you miss a premium payment, MiWayLife will let you know about it. We’ll send you a notification via email and SMS. You’ll be offered a grace period that typically spans 15 days during which you can make up for the missed payment. Just bear in mind that you’ll still be debited again at the end of the month for the following month’s premium.
As an example, if your policy's regular debit order is scheduled for the 25th of January and you miss this payment, you'll have until the 20th of February to catch up, but you’ll also be debited again on the 25th of February to secure your cover for the following month.
What happens if I can’t pay within the grace period?
If you fail to make up that missed premium payment during the grace period it could result in your policy being cancelled. After that first missed debit, MiWayLife will continue to attempt to debit your bank account for three months. If we can’t, your policy will be automatically cancelled.
If my policy is cancelled, will I get my premiums back?
No. A life insurance policy isn’t a savings plan. It’s a contract between you and your insurer. You pay your premiums and, in return, you’ll have coverage for as long as those premiums are paid and up to date. If your policy is cancelled, you don’t get those premiums back. Also, if you had to attempt to claim after the grace period – having failed to pay that outstanding premium – any claim will be denied.
Can I reinstate my life insurance policy?
Yes, you can, but you’ll want to move fast. If your policy is cancelled, you can reinstate it within 2 months of the lapse. No new waiting period will apply and no terms and conditions will be changed. However, once that 2-month period has passed, you’ll have to apply for a new life insurance policy and certain waiting periods will apply. Also, the 2-year suicide clause will start afresh.
What can I do if I’m battling to pay my insurance premiums?
Allowing your policy to lapse isn’t your only option. If you have a MiWayLife policy, you can choose to lower your premiums at any time. Your cover amount will be reduced, but it’s better than giving it up completely as you can always increase your premiums and cover amount later on.
The bottom line
At the end of the day, missing a payment doesn’t have to mean the end of the road. Also, there are things you can do to lower your premiums to help you through a financial dip. This way, you and your family can always enjoy that priceless peace of mind.
Did You Know:
You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.
