Clare Louise

Business

Steps to Ensure that Your Term Insurance Policy Never Lapses

Term insurance is beneficial for all. It helps you secure your family’s financial future. But, to ensure that your family enjoys its benefits, you must not let the policy lapse. Here are a few steps to ensure that your term plan remains active.

When it comes to insurance policy, especially term insurance, you may not want to let your policy lapse. What does a term policy lapse mean? How does it affect you? In simple terms, term insurance policy lapse implies that the policy is not valid anymore. And, that you don’t get any protection or policy benefits. This means, in the event of your unfortunate demise, the family will not receive any death benefit and they may be left financially vulnerable.

As a policyholder, no one would want to lose their term insurance benefits. So, to avoid the risk of your term insurance policy getting lapsed, here are a few things that you must do.

Pay the premium on time

According to insurance companies, one of the major reasons why most term policies lapse is because of non-payment of the premium. So, if you have purchased a term plan, make sure that you go through the policy papers, and take note of the renewal date and renew the policy on or before the due date.

If you are unable to make the payment on or before the due date, it is advisable to inform the insurer about it. Generally, most insurance companies provide a grace period of 30 days to allow the policyholders to pay the premium and renew their policy. You can pay the premium during the period and avoid the risk of your policy getting lapsed. If you pay during the policy period, you can avoid paying the late payment fees.

Set up automatic payment for your term insurance policy

Non-payment of even a single premium can lead to the policy getting lapsed. This can have a significant impact; you not only risk losing the policy benefits, but also the premiums you paid earlier. In case of late payment of the premium after the grace period, you may have to go through the full purchase process again, i.e., re-submission of the documents, undergoing a medical examination, etc. Besides, there is also a risk that you may have to pay a higher premium for the same coverage.

It is easy to forget paying the insurance payment considering your busy schedule. But, one of the best solutions to avoid missing any premium payments is automating the same. You can provide a standing instruction to your bank to auto-debit your account with the premium amount on a specific date of the month/year. You can do this online through the bank’s website or mobile application.

If your bank account is linked to your Aadhaar card, you can also set-up automatic payment through e-NACH.

Ensure that your communication details are updated

When you purchase a term insurance policy, you must provide your communication details, including telephone number, email Id, current address, mailing address etc., to the insurance company. The insurers use these details to send you the policy-related details. You may choose to receive the communication from the insurer, including reminders for the premium payment through email, text message, or post.

So, in case you have changed your phone number, email address, or residence address, it is vital that you update the same with your insurer. This will ensure that you get timely reminders and you don’t miss paying the premium. You can update your details with the insurer online through their customer portal or you can visit the office and give a written application to update the change of communication details.

Final Word

Missing your term insurance premium payment would mean you risk policy lapse and losing the coverage. Being disciplined with your premium is the best way to keep your family protected from the financial hassles during your absence.

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Education

Teaching Your Child About Internet Safety

School children will begin to learn about the internet and its benefits, but also its drawbacks. Young children are also vulnerable and will need to learn about the risks of being on the internet. Teach your child early on about being safe on the internet with this guide from this prep school in the South West.

The first conversations

The age for children to be using the Internet decreases as time goes by, as we’re entering a new era of accessibility in technology for children. The key thing to remember is that you should show your willingness to be interested in what they’re doing both online and offline.

Show them that you know what they’re interested in and how they can access information around their favourite things online. This can be as simple as showing them how to use a search engine, or how to play with apps on a smartphone or tablet.

Listen to your child and understand why they want to use the internet and for what purpose. As your child grows older they will come to rely on the internet for further study advice and support, especially during exam periods. They may also want to chat with friends online by playing games or video calls to support their learning.

Warning them of the risks

Child safety is critical when allowing your child to use the internet and is the most concerning element of allowing them free reign. This discussion should be had with your child before they use the computer to go online.

The main risks children could face are:

  • Cyberbullying
  • Phishing
  • Downloading viruses without their knowledge
  • Indecent conversations
  • Viewing explicit content
  • Providing sensitive information to strangers

For parents there should be a series of restrictions in place for your child to avoid accessing indecent websites, social media (until they’re old enough), and ways they could be caught by viruses or phishing software. A lot of internet packages now provide this service.

Tell your child why you do this and they’ll learn how to find those signs if they’re navigating the internet. They’ll soon begin to understand what’s right and what’s wrong when it comes to using online services.

Showing them how to be resilient

The key message for children is to identify what parts of the internet are problematic and what they need to do if they find inappropriate content online.

When they’re younger it’s wise to oversee what websites they’re visiting and what they’ll be using the internet for. Show them the key indicators that a website is safe and let them have a look at a website and identify features that they think are safe or harmful.

There’s a whole range of content online that children, as they grow, will want to be interested in. Their favourite hobbies, online services and communities are accessed using the internet that won’t be avoided – it’s just showing them how to act when they find something rude or uncomfortable. They’ll learn to be resilient and know how to action content when they see it, or know when to talk to an adult about what they have found.

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