Auto Debit in Life Insurance

Auto debit is an automated and convenient payment facility that helps your life insurance premium to be paid directly from your registered card or bank account on the due date. This ensures payments on time and keeps your life insurance plan active without any type of manual interruption. This automatic deduction prevents late fees, lapses, and ensures financial protection for your loved ones.

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What is Auto Debit Meaning in Life Insurance?

Auto Debit in life insurance facility allows insurers can automatically take the premium amount out of your bank account, credit card, debit card, or UPI on the day it is due. This means you don't have to pay your premium manually every time it's due. Once you sign up for auto debit and give your permission, the premium amount will be taken out on the date you set. You will also get a message or email confirming that the premium was paid.

This service helps you to always pay your life insurance premiums on time. This helps you to avoid missing payments, late fees, and the need to re-activate your account. This easy approach to ensure you maintain your life insurance protects you by ensuring you always pay your term life insurance premiums or any other insurance on time. This helps you to safeguard your family’s funds.

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How Does Auto Debit Work?

If you set up auto debit, you won't have to do anything to make sure your life insurance premium is paid on time. This is how it works:

Authorization: You give your insurance company permission to automatically take the premium.

Premium payment mode: Choose a payment method:

Bank account (through NACH or ECS)
Credit or debit card
Net banking
UPI

Automatic Deduction: The premium amount is automatically taken out of your chosen account or card on the due date.

Confirmation: Once the payment is successful, you will get a confirmation via SMS or email.

What Will Happen If My Account Doesn't Have Enough Money on the Due Date?

If your bank account or card doesn't have enough money on the due date, the auto debit won't work.

Some companies will give you a grace period of 15 to 30 days for your insurance policy.

Your life insurance benefits could lapse if you fail to pay your premium, even within the grace period provided.

Tip: Tip: Always ensure that you have funds in your account a day before the date the premiums are due to avoid a failed payment..

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How to Set Up Automatic Payments for Life Insurance?

Setting up automatic debit is simple, and you can do it online or by filling out a simple form. These are the main options:

Automatic withdrawal from your bank account (NACH/ECS)

Fill out a NACH mandate form and send it to your insurance company.
Attach a canceled check to prove that you have a bank account.

It takes 5–7 working days to activate. Once active, premiums are deducted directly from your bank account.

Auto Debit via Credit or Debit Card

Enter your card details: card number, expiry date, and CVV.
Set up standing instructions while making an online premium payment.
Works instantly and is completely paperless.

Net Banking Standing Instruction

Go to your insurance provider's website.
Log in and select auto debit via net banking.
Authenticate and authorize the payment through your bank's online portal.

This method is also quick and doesn't require any physical forms.

UPI Auto Debit

Open your UPI app (e.g., Google Pay, PhonePe, Paytm).
Go to the “AutoPay” or “Mandates” section.
Enter your UPI ID (VPA) and approve the auto debit request.
UPI Auto Debit is instant, secure, and supports payments up to ₹2 lakh.

Auto Debit Options

Payment Method	Setup Time	Limit	Paperless?
Bank Account (NACH)	3–7 days	No limit	No
Credit/Debit Card	Instant	Bank limit	Yes
Net Banking	Instant	Up to ₹10L	Yes
UPI Auto Debit	Instant	₹2L	Yes

Wrapping It Up:

One of the easiest ways to handle your life insurance policy is to set up automatic payments. Auto debit helps keep your life insurance active without breaks, whether the money comes from your bank account, card, or UPI. Setting it up is a smart move that helps keep your family's finances safe without making your daily life more difficult.

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FAQs

Q: What does it mean to have auto debit on your life insurance?

Life insurance companies offer a service called "auto debit" that automatically takes your premium out of your account or card on the due date.
Q: How do I stop Max Life Insurance from taking money out of my account without my permission?

You can cancel by filling out the Max Life Insurance Auto Debit Cancellation Form or by calling Max Life's customer service.
Q: Is it possible to use UPI for automatic payments?

Yes, the answer is yes. You can use UPI Auto Debit for policies worth up to ₹2 lakh. You can set it up in your UPI app by giving it permission to do so on a regular basis.
Q: How do I stop auto-debit in SBI Life Insurance?

Answer: To stop auto debit in SBI Life Insurance, you need to either go to your nearest SBI Life branch and write a letter or download and fill out the SBI Life Insurance Auto Debit Cancellation Form.
Q: How do you stop auto debit in HDFC Life Insurance?

Ans: Follow these steps to stop auto debit for your HDFC Life Insurance policy:
Go to the HDFC Life website or app and sign in.
Go to the section for paying premiums and look for the settings for auto debit.
You can also get help by calling HDFC Life customer service at 022-68446530.
You can also go to the nearest HDFC Life branch and ask to cancel the auto debit.
Make sure to cancel at least 7–10 days before the premium due date to avoid having the payment taken out automatically.
Q: How do I stop auto debit in SBI?

Answer: If you set up automatic payments through your SBI bank account (not just SBI Life), you can cancel the standing instruction using SBI Internet Banking:
Go to onlinesbi.com and sign in.
Click on e-Services, then Standing Instructions, and then View/Cancel.
Click Cancel after selecting the auto debit instruction.
If you need to, you can also go to your home branch and write a cancellation request.
Q: What is the fee for an auto debit return in life insurance?

If your premium auto debit fails because you don't have enough money in your bank account, you will be charged an Auto Debit Return Fee. The bank or insurance company may call this fee a bounce or return charge.
Q: How do I stop LIC's automatic payments?

Ans: To stop LIC (Life Insurance Corporation of India) from automatically debiting your account, you need to do the following:
Go to your LIC branch and write a letter asking them to cancel the auto debit feature.
You can also get help by calling LIC customer service at 022-6827 6827 or sending them an email.
You can also fill out a LIC Auto Debit Cancellation Form online or at your nearest LIC branch.
Do this at least 7 to 10 days before the next premium due date to avoid automatic deduction.
Q: How to set up automatic payments for HDFC Life Insurance online?

Ans: Go to the HDFC Life website, log in to your account, and click on "auto debit" under "premium payment." Then, follow the steps to approve the payment.

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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. ₹361/month is the starting price for a ₹1 crore loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10

+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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