We all know that life insurance is a very important thing to protect our family and loved ones in case of an unfortunate event. It is one of the most expensive things that we need to pay for our entire life.
But there is a problem which we need to consider before purchasing a life insurance policy. That problem is life insurance contestability period.
What is life insurance contestability period?
Contingency period is the period of time that you need to wait before you can claim any benefits from your life insurance policy.
It is a term used by the insurance companies which indicates the time period after which you can claim any benefits. If you are buying a term insurance policy then it will be called as the term contingency period.
How long is the life insurance contestability period?
The contestability period is the time period after which you will be eligible to claim any benefits from the life insurance policy. It is usually 6 months, 12 months or even 2 years.
There are some policies where you will be eligible to claim any benefits within 3 days. So, it depends on the policy that you have purchased whether you will be able to claim any benefits or not.
What happens if I don’t pay premiums in time?
If you are not paying your life insurance premium in time then the insurance company will cancel your policy and they will refund you the money that you have paid so far.
But in some cases they may also charge you a penalty for not paying the premium and this will increase the premium amount. This is the reason why you should always pay your premium on time.
How long do I have to pay the premium?
You need to pay your premium on time. If you want to get any benefits from your policy then you need to pay your premium on time. You need to pay the premium on time as otherwise you will not be able to claim any benefits.
Conclusion:
So, these were the life insurance contestability period. If you are not paying your premiums on time then you will not be able to claim any benefits from your life insurance policy.