Aditya Birla Sun Life Insurance Company Limited

First Unpaid Premium

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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.

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ABSLI Salaried Term Plan

Exclusively For Salaried Individuals

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4 Plan Options

Icon-Whole life cover

Life Cover upto 70 years

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Optional Accelerated Critical Illness benefit

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Inbuilt Terminal Illness Benefit

Life Cover
₹1 crore

Premium:
₹508/month*

ABSLI Salaried Term Plan (UIN:109N141V02) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
*LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Annual Premium: ₹ 6100/- ( which is ₹ 508.33/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
ADV/5/22-23/290