Your cover does not stop overnight
Direct debits fail for all sorts of reasons: a new bank account, a card change or a tight month. When a premium goes unpaid, the insurer normally writes or emails to let you know and tries to collect again. You get a grace period to make the payment.
The length of the grace period varies by insurer and is set out in your policy terms. Pay within it and nothing changes.
When a policy lapses
If the premium stays unpaid after the grace period, the policy lapses. From that point it no longer covers you, and the insurer will not pay a claim. Term policies have no cash value, so there is nothing to recover.
A lapse can be hard to spot if letters go to an old address. Keep your contact details up to date with your insurer.
Getting a lapsed policy back
Some insurers will reinstate a policy that lapsed recently. You usually need to pay the missed premiums and answer questions about any changes in your health since you applied. If your health has changed, the insurer may refuse or change the terms.
The sooner you act, the better your chances. After a long gap, you may need to apply for a new policy, priced on your age and health now.
- Call your insurer as soon as you notice
- Ask whether reinstatement is possible
- Be ready to answer new health questions
- Update your bank details to stop it happening again
If money is tight
Talk to your insurer before you miss a payment. Some policies allow a short premium holiday. You might also reduce the cover or shorten the term to lower the cost while keeping some protection.
Waiver of premium is worth knowing about when you buy. It pays your premiums if illness or injury stops you working, so your cover carries on during a difficult time.
How Hi Tomorrow helps when payments slip
If you bought through us and a payment fails, get in touch. We can contact the insurer with you, check the grace period and help you avoid a lapse. If cost is the problem, we can look at changes that keep you covered for less.
If your policy has already lapsed, we can check reinstatement or compare new cover across our panel. Acceptance and terms are subject to the insurer's underwriting.