Aditya Birla Sun Life Insurance Company Limited

First Unpaid Premium

4.5
Rated by 1 readers

Definition

First unpaid premium is the first default in paying premium when the policy renewal falls due.

Definition

Under an insurance policy, the contract remains valid up until the premiums are paid regularly. When the policyholder does not pay the premium on the due date for the first time, it becomes the first unpaid premium. On failure of the premium payment, the insurance company provides a grace period of 30 days. It is the duration when the policyholder is covered completely under the policy but the obligation to pay the premium applies.

Once the premium remains unpaid, the benefits under the policy will lapse.

Example

Richa took a term insurance plan for 20 years. She selected the payment frequency as annual. After paying the premium for the first year, Richa failed to pay the premium on the first renewal date 20.2.2022. So, the first unpaid premium under the term plan that Richa purchased was on the policy renewal date.

How much helpful you found for you?

4.5
Rated by 1 readers
0 / 5 ( 0 reviews )
Not helpful
Somewhat helpful
Helpful
Good
Best
Don’t forget to share helpful information in your circle

Thank you for your details. We will reach out shortly.

Thanks for reaching out. Currently we are facing some issue.

Get ₹10 lac Cancer
Insurance for just ₹120/month1

**Please enter a valid First Name.**
+91Icon Phone
**Please enter a valid Mobile Number**
*This field is required.
Plan_Logo

ABSLI Cancer Shield Plan

Fight cancer³ without worrying about expenses.

ICON-CLICK

Covers all stages of cancer

Icon-SaveMore

Protects savings

NoMedicalCheckup

No medical required

ICON-CLICK

5 years premium waiver

Cancer Cover:

₹10 lakhs

Premium:

₹4/day

Recently Added Article

1Scenario for female Age: 21 years, level Sum Assured, Income Benefit: Yes, Premium paying Term: regular pay, pay frequency: monthly, policy term: 20 years, Premium: Rs. 119.70 monthly (excl GST) 3Please refer to the product brochure for details on exclusions. ABSLI Cancer Shield Plan(UIN: 109N103V03) is a traditional non participating health insurance plan
ADV/5/22-23/290