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The premium payment for an insurance policy must be made at the beginning of the period.
If your first installment is paid on 28.09.2017 and you start maintaining an insurance policy, the second month payment date for your second installment is 2019.05.28.
28 is the last day of the month, but it is the first day that your insurance policy begins.
According to the subject of financial management, insurance premiums are a type of “scarce annual” cash flow.
That is, this initial flow of money must be paid (by you) to a certain amount of money, once a certain period, at the beginning of the period.
What, then, will happen if you are unable to pay your premium on the due date?
You will receive a grace period of 30 days for the payment of the premium, but you must remember that within 30 days you will pay the next installment.
What if you fail to pay any premium on the due date or within the grace period?
Then, your insurance policy will be deactivated, and after the grace period, all payments due will be paid in lump sum for another 90 days.
Therefore, you should make sure to pay the premium on an insurance policy on the due date. It is your responsibility and not that of anyone else’s.
Even if you pay the insurance premium one day later than the due date, it can be a big delay.
So if you pay the insurance premium through agencies, check to see if the money has been credited to your account properly.
It is advisable to pay an annual premium if possible, rather than a monthly premium.
If so, make the most of your money by paying your premium and avoiding any inconvenience to both the insurance company and you.
Keep your insurance plan alive.