Do you regret having taken out this insurance, if your needs were different?

Is it difficult for you to ask for the cancellation of the insurance legally?

You don’t have time to lose and you prefer to return the receipt when they pass it on to you. You have always done it that way, but you have heard, you have been told and then you ask yourself the question: What happens if I do not pay the insurance and return the receipt?

What happens if I do not pay for the car, house insurance …

It is the obligation of the policyholder to pay the premium in advance, at the beginning or at the renewal of the insurance contract.

When you stop paying for the insurance, according to the provisions of article 15 of the Insurance Contract Law, the insurer can act in two different ways. On the one hand, it can terminate the contract, that is, cancel it. Or you can be required in an executive way, normally by means of an order for payment, the payment of the insurance premium.

The first consequence of non-payment of insurance is that if you have a claim, the company is released from its obligation to pay you for its consequences.

If it is also compulsory insurance, you risk being penalized if you do not have it. In the case of car insurance, the penalty can reach up to 3,000 dollars.

1 month of coverage + 6 months to claim


When you stop paying one of the next (renewal) premiums, your insurance coverage is suspended one month after the expiration date. If during this first month you have a claim, the insurer is obliged to attend to it. And you to pay the bill.

The company has a period of 6 months, after expiration, to executive demand the payment of the premium. If after this time it has not been done so, the insurance contract is automatically terminated.

I recommend reading this article because this is not always the case. The Supreme Court is valid that you can claim the insurance payment after more than six months.

But during this time, if the contract has not been terminated or terminated, you can pay the premium and the insurance takes effect again 24 hours after payment.

What happens if I stop paying for life insurance

To answer what happens if I do not pay for life insurance, you have to go to the exceptional treatment that the LCS provides for certain modalities.

In the event of non-payment, this exceptional regime translates into the right to reduction. Through the reduction, the initial insurance is transformed into a similar one with lower benefits. This new level of benefits is the one corresponding to the premiums charged up to that moment.

To qualify for a reduction, at least two years have elapsed since the insurance was contracted. Furthermore, for the reduction to be made, the contract must have a table of values ​​that relates the equivalence between the premiums paid and the benefits once the reduction has been applied.

The reduction of a life policy makes it remain in force until its termination without the need to continue paying the premium.

Moreover, as a policyholder you have the right to return to the original conditions, paying the corresponding premiums and of course before the loss occurs.

conclusion

If what you want is to cancel the insurance contract, because you have sold the car or the house, or you simply want to change the insurance company because it offers you better conditions, it is best that you follow these steps: How to unsubscribe from insurance: Guide to do it in an efficient way.

It was a mistake. There were insufficient funds in the account and you want to continue with the insurance. Well, if the company has not resolved the contract, you are still in time to pay the bill if six months have not passed.

But you must bear in mind that the insurer can terminate the contract at any time. Of course, once the grace month has elapsed and communicated it previously. You can also wait for six months until the automatic termination of the contract.

And above all, do not forget that if you have a fractional payment, paid the first fraction, you are obliged to pay the rest.

And you, are you one of those who return the receipt to cancel the contract or request the cancellation legally?

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