Can I Pay my Premiums for the Year When I Sign Up for the Policy?

One of the most important things to do after buying a life insurance policy is to keep that policy safely in place. Besides finding some physical place in which to keep the policy so that it is always readily accessible whether you live in a nursing home or receive home health care, you want to make sure to keep the coverage in place. This is done by always making certain to make your premium payments on time.

If you are like many people, keeping up with a monthly premium payment is not difficult. It is something as simple as remembering to pay the mortgage or rent on your home. But, unlike a mortgage or rent payment a life insurance premium payment may be one of the first payments you decide not to pay if faced with a sudden financial difficulty such as a job loss.

While many, if not most, insurance companies allow a grace period after which a premium payment can be paid and save the coverage from lapsing, there may be a concern about what you would do if you unfortunately did face the difficult decision to stop paying the premium on your insurance policy. If it were to lapse would you be able to qualify for another policy in the future? If your health condition changed considerably in the interim, it is possible that you would not.

While these are also extreme circumstances which you may not ever have to face, you should consider what you can do now to do in order to make certain your coverage stays put. The easiest thing to do is make a commitment to making payments to your plan on time. One way to facilitate this is to choose a method of payment with your insurer that makes it nearly impossible to ever pay a late premium payment.

Choosing a Payment Method

Many insurers will allow a premium payment to be automatically deducted from your checking account when it is due. Or, you could pay your premium with a credit card. But, you could also check with your insurance company when you apply for coverage to find out just what other payment arrangements they offer policyholders.

While a monthly payment may be more convenient in terms of amount, it is possible an insurer will offer a policyholder the option of paying quarterly, semi-annually or even annually. Finding a company that allows you to pay for an entire year's worth of premiums should not be a problem. You will have to come up with a larger sum of money at the start of your plan coverage, but by paying one year up front it could save you a lot of time and trouble.

For instance, if you did have to face some financial difficulty during the year you would not have to worry about your important life insurance coverage lapsing. That is because it would be paid up for an entire year. Also, if you happen to be the type of person who tends to be forgetful when it comes to paying bills, paying an insurance premium in full for a year may keep you from inadvertently facing an insurance lapse due to your forgetfulness.

Paying an insurance premium is vital to keeping the coverage in place. You would not want to lose valuable life insurance coverage due to forgetting to make a premium payment. Most any insurance company will allow policyholders to select the frequency with which they make payments. It is likely your company will allow you the convenience of paying a year's insurance premium when you sign up for the plan of your choosing.

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