What is NACH in Life Insurance?

NACH (National Automated Clearing House) is an electronic payment service managed by NPCI that allows automatic premium deductions from a policyholder's bank account. For life insurance policies, NACH ensures timely premium payments, eliminates the hassle of manual transactions, and helps maintain uninterrupted coverage. To activate it, a policyholder submits a one-time digital mandate (e-NACH) through net banking or debit card authentication, authorizing the insurer to debit the account for recurring premiums.

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How Does NACH Work in Life Insurance?

When you buy a life insurance policy, you can choose the NACH option to pay premiums. Here's how it works:

Mandate Authorization: Policyholders provide a one-time NACH mandate to their insurer, approving auto-debits for policy premiums.
Scheduled Debit: On every due date, the NACH system instructs the policyholder’s bank to deduct the premium and transfer it to the insurance company.
Seamless Payment: Payments happen automatically without manual intervention, ensuring premiums are always paid on time.

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₹75
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@ Starting from ₹ 12/day⁺

How Can You Apply For NACH?

One can apply for NACH easily either through the bank or using their Net Banking credentials. Here are the steps to follow to apply for NACH online:

Login to your Net Banking account using User ID and Password.
Under the service section and select “e-NACH Mandates”.
Click on e-NACH registration button.
Fill up the required details and click submit.

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What is the NACH Life Insurance Registration Process?

A life insurance policyholder can also ensure timely premium payments using a NACH facility. Given below are the steps to register for NACH life insurance:

Submit a NACH Mandate:
The policyholder fills out a NACH mandate form to consent life insurance companies to debit their account for premium payments.
Application Sent to the Bank:
The insurance provider sends the registration form to their sponsor bank. They upload it to the NPCI platform for the verification.
Bank Verification
The policyholder’s bank thoroughly verifies the mandate details against its records. Thereafter, the bank accepts the mandate if details are valid. The policyholder receives a confirmation SMS.
Automated Deductions:
Once your bank approves the mandate, life insurance premiums are automatically life insurance premium automatically deducts from the bank account on a due date.

What are the Benefits of NACH for Life Insurance Policyholders?

Convenience: With NACH, premium payments happen automatically, so you don’t have to log in to your bank account or visit the insurer’s branch whenever a payment is due. This reduces the burden of remembering multiple due dates, especially if you have more than one policy.
Timely Coverage: Since payments are made directly on the scheduled due date, the risk of policy lapses due to missed or delayed payments is almost eliminated. This ensures that your life insurance coverage continues without interruption, protecting your family’s financial security.
Reduced Risk: Manual payments can sometimes lead to errors, such as paying incorrectly or forgetting to pay altogether. NACH minimizes these risks by automating the process, lowering the chances of penalties, late fees, or loss of benefits tied to timely premium payments.
Paperless Process: Everything is digital, from mandate registration to recurring deductions. There's no need for cheques or physical receipts, which saves time and makes the process environmentally friendly. All transactions are securely recorded in your bank statement for easy reference.
Consistency: Regular and automatic deductions ensure that your insurance policy remains in force as long as you maintain a balance in your account. This consistency provides peace of mind, knowing that your financial protection plan is always active and reliable.

How can I set up and manage NACH for Life Insurance?

Registration: You can register for NACH through your insurer, usually via net banking, debit card, or by submitting a physical mandate form to your bank.
Approval: Your bank verifies and activates the mandate, which typically takes 10–15 working days.
Tracking: All NACH transactions appear in your bank statement for easy monitoring.
Cancellation/Modification: You can stop or modify your NACH by submitting a request through your bank or insurer.

Wrapping Up!

NACH is an online system that allows you to manage recurring payments. With this facility, you can ensure timely payments and manage debt more efficiently. It offers flexibility with a quick payment option. An individual with a term insurance plan must opt for NACH to promote timely premium payment. This ensures that their loved ones are financially secure even in the absence of a policyholder.

Note: Check the premium of your plan using life insurance premium calculator online at PolicyBazaar.

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FAQs

What happens if my NACH payment fails?

If your account does not have enough balance on the premium due date, the NACH transaction will fail. You will need to make the payment manually to keep your policy active. Missing a payment may lead to penalties or, in some cases, a temporary lapse in coverage.
Can I cancel a NACH mandate?

Yes, you can cancel your NACH mandate anytime by contacting your bank or insurance company. This is useful if you want to switch to another payment method or discontinue automatic deductions.
Is NACH safe for life insurance premium payments?

Absolutely. NACH is regulated by the National Payments Corporation of India (NPCI) and uses secure banking protocols to protect your transactions, ensuring that your payments are safe and reliable.
Can I change my payment frequency after registering for NACH?

Yes, you can modify the payment frequency (monthly, quarterly, half-yearly, or yearly) by updating your mandate with your insurer. Make sure the changes are approved before the next scheduled deduction.
How long does it take to activate NACH for a life insurance policy?

Activation usually takes around 10–15 working days after submitting your mandate. Once active, premium deductions will happen automatically on each due date.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

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Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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