Aviva Term Insurance Grace Period

What is Grace Period for Aviva Term Insurance?

The grace period for any insurance means the extra time period provided by insurers for the customers to pay their premiums without losing on policy benefits. This period starts after the end of the premium due date and can be 15 to 30 days long. The Aviva Life Term insurance plan’s grace period depends on the premium method and premium paying term chosen by you at the time of policy purchase. The two premium paying methods are:

• Single Premium Pay: One-time lump sum payment

• Regular Premium Pay: Monthly, quarterly, or half-annually installments depending on the insurance company

Here is the grace period offered by Aviva life term insurance company for the various premium payment modes.

How Does Aviva Term Insurance Grace Period Work?

The Aviva term insurance grace period works by providing customers with extra time duration to pay their premiums after the end of the due date. So suppose you for some reason weren't able to pay your premiums for your monthly premium on the due date of 9th May, you can still pay your premiums till the 24th of that month without worrying about policy lapse. You will still be covered under the policy benefits during this period but in case you are unable to pay your premiums after the end of this grace period, your policy will lapse.

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

In case you are unable to pay your policy premiums after the end of the grace period, your policy will lapse. You will no longer be covered under the policy benefits and your family can't file for a death claim in case of your unexpected death. You will also no longer be eligible to receive the paid premiums up until that point, in case you have opted for a term plan with return of premium option.

Should I Purchase A New Term Plan or Revive The Lapsed Policy?

If for some reason you have accidentally lapsed your previous term insurance, you have the option of either purchasing a new policy or reviving the old policy. Most insurers provide a revival period after the lapse of a policy, during which you can reinstate your lapsed policy by paying revival and other penalty charges. You should compare the costs of reviving the previous term plan or purchasing a new one and see which is more affordable. It is important to know that the price of the new plan may be higher as the premium rate increases with age. Therefore it may be wise to reinstate the previous policy as they would provide life cover at lower premiums.

Required Documents To Reinstate Your Aviva Term Insurance

Here is a list of all the documents required to revive the old Aviva life term insurance.

• For a policy in lapse for less than 6 months

  • Revival Charges

  • Outstanding Premiums

• For a plan in lapse for more than 6 months

  • Declaration of Good Health

  • Revival and quotes application

  • Outstanding Premiums

  • Revival and Interest rates charges

• For a plan in lapse for more than a year

  • Outstanding Premiums

  • Declaration of Good Health

  • Income Proof

  • Revival and Interest rates charges

  • Revival and quotes application

  • Self-attested ID and Address proof

Final Thoughts

Aviva term insurance offers a grace period to give their customers an extra time for policy premium payment after the end of the due date. This feature not only makes the premium paying experience easier but also convenient.