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If you think you may not be able to pay your premiums, here’s what that means for your pet insurance policy (and how a grace period can help).
Times are tough, we don’t need to tell you that. Even when your wallet is feeling thin, it’s important to keep up to date with necessary payments to avoid the consequences of not paying (which we’re going to talk more about in this blog).
An informed customer is a protected customer and just like any monthly service, pet insurers cannot continue to protect you and your pet if they do not receive your premiums.
If there was some magical way to insure all the pets in the world for no cost at all, pet insurers who love pets as much as you do would surely do it. But the reality is that they are companies just like any other and they need to put measures in place to protect themselves from losing money. (That being said, insurers like Oneplan Insurance do the best they can to make their policies affordable, flexible and fair.)
Read more: 3 Things You’ve Gotta Know Before You Compare Pet Insurance Companies
What happens if I don’t pay my premium?
Each month you will pay a monthly premium to your insurer in exchange for certain pet health-related services. It is your responsibility to ensure that they receive your premium on the date nominated by you.
If you don’t pay the bill yourself or if your debit order does not transfer to them, generally insurers reserve the right to collect any failed or rejected premiums through NAEDO (Non-Authenticated Early Debit Order) and/or double debit your nominated bank account with the outstanding premium and the following month’s premium. This means if you have the money in your account but are choosing not to pay, they can protect themselves.
Should the failed or rejected premium need to be collected through NAEDO, your premium will not be collected on the date that you have nominated, and you may incur additional bank charges for which you will be responsible.
What is a Grace Period?
If the above has you feeling a little uneasy, there’s no need to panic just yet. Your policy is not going to simply stop – insurers often have a Grace Period in place so that doesn’t happen.
If they don’t receive your premium payment, there is a Grace Period in which you can pay the outstanding premium. For example, Oneplan Insurance gives you just over two weeks of breathing room to pay. The Grace Period is until the fifteenth (15th) day of the month in which the premium was due. So, if your payment for July is late, you have until the 15th to pay. Unfortunately, if the premium isn’t paid during this time, your policy may be cancelled or terminated.
Oneplan also has something called a premium holiday, which is an option but not guaranteed. In the event you cannot pay, you may apply to them in writing for a premium holiday. You can only ever have one premium holiday and no claims may be made nor they we pay for any claims.
Discover: how Oneplan pays you before you see the vet.
How does a Grace Period work?
During the fifteen days of your Grace Period, you may not make any claims because your policy will be suspended. Suspended, but not cancelled. Your policy will be put on hold while you have some room to organise your funds and pay for your premium.
If you make any claims during the Grace Period and we have paid for them, we have the right to reclaim them.
Cancelling your pet insurance is a pain – it means you have to re-register and go through admission fees and waiting periods all over again. There may even be the risk of higher premiums because of a new risk profile. Plus, the longer you stay on one plan and with one insurer, the better benefits and coverage you can get for your senior dog.
Oneplan Pet Insurance wants to be on an insurance journey with you for the long haul! Find out more here.
Yours In Not-So-Average Pet Advice,
The Petinsurance.co.za Team
#NotYourAveragePetAdvice
