When you purchase an insurance policy, you need to renew it annually before it lapses. This is mostly communicated by the company you are insured with. They give you a call as a reminder to renew your policy. 

First, let’s take a look at what a lapse is.

What Is Policy Lapse?

Policy lapse is when you fail to pay for the renewal and it causes your policy to stop providing benefits. On top of that, you will need to go through all the paperwork again in order to buy the same policy again. So it is important to renew your policy on time to avoid lapse. 

Some companies offer a grace period. The grace period is the time of 7-15 days companies wait for you to renew your policy. If you miss out on the renewal then you can be saved by the grace period. but if the insurance provider does not offer the grace period then you might need to buy the policy again. This means that you will have to go through the whole process again and start from zero. The insurer will not provide cover during the grace period. The cover will only be provided after the payment has been made. If the grace period ends without any payment, then your policy ends and no longer gives you the cover of any kind making you purchase a new policy. 

Benefits Of Policy Renewal

Some benefit of insurance policy renewal before it lapses is that you get minimized premium and continuous cover. Your insurer takes care of the rest of the documentation and you only have to make payment for the renewal of your policy. It is essential to renew the policy on time if you want to save money and resources and don’t want to lose any continuation benefits.

Insurance companies often do not check back on their clients for queries unless it is time for a renewal policy. If you buy an insurance policy through an insurance broker, you will not have to face this problem. Hence, Let’s Compare is here to assist you throughout after you purchase the policy. We are partners with 10 leading insurance companies in Pakistan and we ensure that our clients are satisfied with the service. Visit our website to get insured today!