Payments

If you miss a payment, your insurer will notify you right away. Paying within the grace period typically allows you to maintain your coverage, though late fees may apply.  

If a payment is missed, you should try to schedule a recollection or make a manual payment to cover the missed amount prior to the scheduled cancellation date to avoid your policy cancelling for non-payment. 

Talk to your insurance advisor about steps you can take to avoid missed payments. 

When a monthly bank withdrawal is returned as non-sufficient funds (NSF), a special withdrawal notice is generated and sent to both you and your advisor to tell you when the fee will be withdrawn from your bank account.  

**It’s important to remember that the NSF fee withdrawal may be a separate withdrawal from your regular monthly withdrawal. 

A grace period is extra time an insurance company gives a policyholder to make a late payment without penalty and is often included in mortgage and insurance policies.  A grace period typically ranges between 15 to 30 days and is designed to help maintain continuous coverage, even if a payment is slightly delayed.  

Understanding the specific terms of your policy’s grace period is crucial to ensuring uninterrupted protection and avoiding any potential lapses or financial consequences.  

If you expect to miss a payment or need to delay it, contact your advisor as soon as possible so they can explain your options and check your insurer’s grace period. If you’re unable to pay in time, your policy could be cancelled. 

 In some cases, a payment can be deferred to avoid a non-sufficient funds (NSF) situation. 

Each insurance company has its own payment policies. Multiple missed or late payments can result in policy cancellation, and repeated cancellations can significantly increase your future insurance rates. 

For example, if you’ve had two cancellations for non-payment within a 36-month period, you may no longer qualify for a payment plan and could be required to pay your full premium upfront until you’re outside that timeframe. Similarly, a returned payment on the first installment of a new policy can lead to immediate cancellation or additional restrictions on your account. 

To avoid these issues, it’s important to understand your insurer’s specific payment and cancellation terms. Speak with your insurance advisor to review your policy details, discuss flexible payment options, and ensure you stay protected without interruption. 

If you need to make changes to your payment plan or method of payment, please contact your advisor.  

It’s important to note that some carriers limit the number of deferrals or payment schedule changes allowed within a policy term. If you find that your current payment dates are consistently difficult to manage, you should ask to have your regular payment date moved to a more convenient time of the month. 

Read our blog post on the consequences of missed payments.