Max Life Term Insurance Grace Period

Many individuals holding a term life insurance plan find it quite difficult to renew their plan on or before the expiration date. In order to help the life assured retain their policy features and benefits and avoid paying any kind of late renewal payment, the insurers provide a grace period. At the time of demonetization in 2016, various individuals faced an unexpected cash crisis.

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In order to improve this scenario, the insurance regulating authorities offered an additional grace time of 30 days for paying the term insurance premium amount and renewing the plan. The term insurance grace period varies depending on the term of premium payment such as monthly, quarterly, half-yearly or annual. Various insurers provide grace periods with different T&Cs such as Max Life Term Insurance grace period for monthly payment frequency is 15 days and 30 days for Annual, half-yearly, and quarterly premium payment frequency. Let’s discuss Max Life Term Insurance in detail:

What is Max Life Term Insurance Grace Period?

A grace period is the additional number of days allowed by the insurer to pay the Max Life Term insurance premium rates and renew the term policy. The grace time varies depending on the premium payment method you select. Most insurance providers in India allow two ways of paying a premium:

  • Single-Premium: In this, you make a one-time payment of premium in a lump sum at the time of purchasing the plan.

  • Regular Premium: In this, you can pay the premium amounts on annually, bi-yearly, quarterly, and monthly basis as per your requirement.

The below table will help you get a clear picture of the Max Life Term Insurance Grace Period as per the premium payment frequency you select.

Mode of Premium Payment Grace Period
Annually 30 days
Bi-yearly 30 days
Quarterly 30 days
Monthly 15 days

How does Max Life Term Insurance Grace Period work?

The grace period is generally 15 days for monthly premium payments i.e., called regular payments, and 30 days for longer premium payment options such as half-yearly and yearly. Most insurance companies send reminder messages for the payments of premiums before the due date and then inform the policyholder if the plan has entered into the grace time period.

In case the grace period has passed, it may impact you adversely. If you exceed the grace time, the Max life term insurance will get cancelled and the whole procedure of insurance application will start from the beginning. So it is recommended to make your term insurance payments on time.

What Will Happen After the Grace Period for Max Life Term Insurance is Over?

In case of not renewing the Max life term insurance plan during the grace time, the plan lapses, and your family members are left without financial protection in case of the policyholder’s demise. A lapsed term plan is a big loss for the policyholder because he/she loses all the premium that is paid and also the insurance coverage.

However, if the life assured dies during the grace time, his/her family is entitled to receive a death payout after the deduction of the premium amount that is not paid.

Should You Purchase a New Plan or Revive a lapsed Term Insurance Plan?

Most insurers give policy buyers the option to revive their term plan. The T&Cs vary as per the policy guidelines of the company. You may also be required to undergo a medical examination for reviving the plan. Typically, a timeframe of 2 years is required to revive the term plan but the extra money is to be paid in the form of revival fees, costs of medical examinations, and penalty and interest charges.

The policyholder should compare the rates of opting for either of the 2 steps: Purchasing a new term insurance plan or policy revival. If you had purchased the lapsed term plan at 35 years of age and want to purchase a new plan at 45 years, it may cost you extra. If you are also within the permissible 2-year time, the revival costs will be added which involve 2-year premiums, interest, medical tests, and revival fees.

If you are not sure whether to revive the old plan or invest in a new term insurance plan, it is recommended to compare the premium rates and decide accordingly.

How to file Claims During the Max Life Term Insurance Grace Period ?

In case of the unforeseen death of the life assured during the grace time, the insurance claim registered by the nominee will be provided by the insurer.

Let’s understand this with the help of an example:

A policyholder whose insurance premium due date is on 9th September each year. He forgets or misses to make the premium payment on Sep. 9th in the 5th year of the policy. And, from the very next day, the plan enters the grace period. Then, after 4 days i.e., on 13th Sep. the policyholder suffers a heart attack. The nominee appointed by the policyholder files a claim on Sep 18th. Since the plan is still in the 30 days of grace time and the claim has been made within that time, the insurance company will settle the claim for SA as it would have been in an active plan. The claim settlement will take place as per the policy’s T&Cs.


  • Ans: Yes, there are a number of options available for you to pay the term insurance premium amount. You can pay your premium amount yearly, half-yearly, quarterly, or monthly. You are also allowed to pay the amount in a lump sum.
  • Ans: You generally have a grace period of 30 days to pay the premium one time in case of non-payment of premiums and 15 days for monthly mode. If still, you do not pay premium amounts after the grace time, your plan stands invalid and you cannot claim for any coverages and benefits from your plan.

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Max Life Term Insurance Grace Period Reviews & Ratings

4 / 5 (Based on 51 Reviews)
(Showing Newest 10 reviews)
Bhikiyasen, March 02, 2021
Fulfil the requirement
My term insurance plan has fulfilled my and my family requirements. It has so many additional features which will make my term plan worth it. I got the max life term insurance policy. Great team.
Barwani, February 19, 2021
Survival plan
I have got the survival plan when I bought this max life term insurance policy from the policybazaar. I checked few plans into the website and found this amazing plan. I am thanks to team policybazaar.
Uttamnagar, October 17, 2016
Beneficial Policy
The max life term insurance plan i have bought in low premium is fully satisfactory to me. Services provided by the members of the insurance company is fantastic, online renewal facility reduces the paperwork. The updates regarding insurance plan is mailed to me regularly.
Amalapuram, September 26, 2016
Fair Insurance
Got max life term insurance plan in less premium. The service is fantastic with 24X7 customer service. Online renewals and updates are on website of the company. Policy covers maximum expenditure and claims are simple to sanctioned.
Greater_noida, July 26, 2016
Max insurance plan
My friend suggest me to buy a insurance policy. After some researching i purchase term insurance plan from max newyork life insurance. The insurance plan is perfect. Even the online portal service is so simple anyone can access it. Good returns in low premiums.
Nainital, July 26, 2016
Term plan
Max life term plan of mine is fantastic which has maximum benefits and high returns in less investments. Policy coverage is high ~89% and the claims are easy to get. Service is fabulous provided by the executives and staff of the company.
Aallapalli, March 29, 2016
Gonda, February 29, 2016
Good Service
Max life policy is a good policy in Term market. Policy Bazaar is a good supporter for customer. Thanks Policy Bazaar
Kolkata, February 06, 2016
I have life insurance and the premium is low. The claim is around 19 lakh at the end of the policy. The service is real good and on time. But the claiming process is slow. An average policy.
Plan Name: Online Term plan
Agent Code: BPW01312
Dehradun, February 06, 2016
Life secure with max insurance. Service is nice and fast. Policy coverage is 90% and claims are high but the premiums are very less. Around eighteen lakh is amount of payback at the end of policy.
Plan Name: Online Term plan
Agent Code: BPW01312
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