SBI Term Insurance Grace Period

Let us understand what the grace period is and how it works.

What Is Grace Period for SBI Term Insurance?

The grace period is the maximum number of additional days provided by the insurer to pay your term insurance renewal premium. Simply put, it refers to the time period that begins right after the due date of the premium payment. SBI term insurance plan provides an extended period after the due premium payment date, during which you can pay your premium, without worrying about losing on policy benefits. This grace period is different for all the various premium payment modes offered by the insurance company. 

There are 2 premium payment methods for term insurance plans: 

• Single premium: One-time lump sum payment 

• Regular premiums: Divided into monthly, quarterly, and half-annually installments according to the insurer.

Let us take a look at the SBI life insurance company’s grace periods for different term insurance premium modes.  

How Does SBI Term Insurance Grace Period Work?

The term insurance grace period helps policyholders keep their plans active by providing them with an extended period after their due date to pay their premiums. So if suppose, you have purchased a term life insurance with a monthly premium payment mode and the due date for premium payment is 1st of every month, then you would get a grace period of 15 days to pay your premiums. This means that you can pay your premiums anytime till the 15th day of the month, without losing the term insurance benefits.

What Happens When The SBI Term Insurance Grace Period Is Over?

If the grace period expires and you still haven't paid the term insurance premium then the policy is canceled. The lapse of policy means you will no longer be covered against the risks and you will lose all the premiums. You will also not be able to get any returns, in case you have purchased a term plan with the return of premiums option.

Should You Buy A New Term Plan or Revive The Lapsed Policy?

SBI life term insurance offers its customers the option to revive a lapsed policy within the first two years of policy lapse after the end of the grace period. In case you wish to revive your term plan, you might have to go through medical examinations again, depending on the company’s policy guidelines. After the end of these two years, you may have no choice but to purchase a new term insurance plan. 

However, if you are confused between reviving the old policy or buying a new term plan, you should compare the costs for both before making the decision. If the cost of reviving the old policy is much more than the cost of purchasing a new plan, then you should purchase a new term life insurance and make sure to pay the premiums on time to avoid any further policy lapses.

Note: Know what is term insurancefirst and then buy a term plan for your loved ones.

Key Requirements To Revive SBI Term Insurance

Here is a list of all the documents required to revive the old SBI Term life insurance.

For a policy in lapse for less than 6 months

• Outstanding Premiums

• Revival Charges

For a plan in lapse for more than 6 months

• Outstanding Premiums

• Revival and Interest rates charges

• PHS (Personal Health Statement)

• Revival and quotes application

For a plan in lapse for more than a year

• Outstanding Premiums

• Revival and Interest rates charges

• Revival and quotes application

• Self-attested ID and Address proof

• PHS (Personal Health Statement)

• Income Proof

Note: It is suggested to calculate the term plan premium on the term insurance calculator online tool by Policybazaar before buying.

Wrapping It Up!

The grace period is an essential feature that allows customers to pay their premiums even after the end of their due date. SBI term insurance provides this facility at no extra cost and you can pay your premiums easily without losing your term insurance coverage and benefits.

Note: Check out the best term insurance plan in India and choose one that suits your requirements.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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