As per this benefit, the policyholder is given the choice to defer the due premium for a period of up to 12 months from the due date, during which the full risk cover under the base plan and attached riders, if any, remains active. In the event of a claim during this period, the insurer will pay the claim as applicable after deducting the unpaid premiums, if any, as on the date of death or any other insured event covered by the base product and attached riders.
However, this benefit can only be availed after completion of 3 policy years, provided all due premiums have been paid, and the policy is in-force.
Note: The duration of Cover Continuance Benefit (CCB) shall be 12 consecutive policy months from the date of the first unpaid premium. The CCB shall be available multiple times with a gap of 5 policy years from the expiry date of Cover Continuance Benefit availed previously.
Once the Cover Continuance Benefit period ends, the policyholder needs to pay the due premiums, including the premium applicable for the period of CCB, i.e. the base cover premium and additional premium (if any) e.g. ACI benefit premium, rider premium and accident cover premium inclusive of underwriting extra, loading for modal premiums, and any applicable taxes.
Cover Continuance Benefit is an inbuilt product feature, and no additional premium is required to be paid. This benefit is available to all premium paying terms (Regular, Limited & Pay Till 60) except Single pay.
During the Cover Continuance Benefit, the policy will remain in-force with the risk cover as per terms and condition applicable under Grace Period of the policy. This is an inbuilt product feature and no additional premium is required to be paid. The policyholder needs to intimate the company 30 days (15 days in case of monthly mode) before exercising Cover Continuance Benefit. If a premium is unpaid with no prior intimation, the policy at the end of the grace period shall be treated as per the terms & conditions.