Is it Permissible to Pay Life Insurance Premiums in Multiple Installments?
Is it permissible to pay life insurance premiums in multiple installments?
Article 35 of the Insurance Business Law 2000 stipulates life insurance premium payments as follows:
1. The policyholder may pay a single premium or multiple premiums according to the period and method agreed upon in the insurance contract.
In cases where premiums are paid in multiple installments and the policyholder has paid one or several installments but is unable to pay subsequent premiums, after a period of 60 days from the premium due date, the insurer has the right to unilaterally terminate the contract. The policyholder does not have the right to claim back the premiums already paid if the premiums were paid for less than two years, unless otherwise agreed by the parties.
If the policyholder has paid premiums for two years or more and the insurer unilaterally terminates the contract as specified in Clause 2 of this Article, the insurer must pay the policyholder the surrender value of the insurance contract, unless otherwise agreed by the parties.
The parties may agree to restore the validity of the insurance contract that was unilaterally terminated in accordance with Clause 2 of this Article within two years from the date of termination, provided the policyholder has paid all overdue premiums.
Based on current regulations, you may proceed to pay life insurance premiums in multiple installments, with the payment method to be agreed upon in the insurance contract.
Can the life insurance seller file a lawsuit if the customer does not pay the insurance?
Article 36 of the Insurance Business Law 2000 stipulates the issue of lawsuits for premium payment as follows:
In personal insurance, if the policyholder does not pay or pays insufficient premiums, the insurer is not entitled to file a lawsuit to demand the policyholder pay the premiums.
In the event that the customer does not pay the insurance, the life insurance seller is not entitled to file a lawsuit against the customer.
Yours sincerely!
