Avoiding Policy Lapse with Bank Drafts

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about The Basics of Mortgage Protection Insurance and other Mortgage Protection Insurance topics.

Will a bank draft payment help me avoid lapsing?

Avoiding Policy Lapse with Bank Drafts

Your Mortgage Protection Insurance Premium will be due either monthly, quarterly, semi-annually, or annually depending on the premium election you make when applying for the policy. In order to avoid a policy lapse, you must have the payment in by the end of the grace period noted within your policy. It's important that you review your individual policy in order to find your actual grace period information.

The best way to avoid a lapse when paying monthly is to sign up for a monthly bank draft (also called a PAC). PAC payments are generally scheduled a few days in advance of your premium due date and offer the most consistent method of avoiding a policy lapse when paying monthly. There is no concern about mail time, non-mail holidays, or missing checks.

In order to sign up for monthly PAC payments, you'll need to send a voided check to your insurer and complete their pre-authorized checking withdrawal form.



Nobody has commented on this tip yet. Be the first.


URL: (optional)


Not finding the advice and tips you need on this Mortgage Protection Insurance Tip Site? Request a Tip Now!

Guru Spotlight
Carma Spence-Pothitt