What happens if I miss a premium payment?

Missing a life insurance premium payment in Australia doesn't immediately cancel your policy, but there are important timeframes and consequences. Most Australian insurers provide a grace period of 30 days from the payment due date during which your coverage continues even if the premium is unpaid. If you pay within this grace period, your policy continues without interruption. If you don't pay within the grace period, your policy will typically lapse (be cancelled), and you'll lose coverage. However, most insurers offer reinstatement options: you can usually reinstate a lapsed policy within a reinstatement period (commonly 6-12 months, though some insurers allow up to 2 years), but you'll need to pay all outstanding premiums plus interest, may need to undergo medical underwriting again (especially if health has declined), and waiting periods might restart, particularly the 13-month suicide exclusion. If you're experiencing financial difficulty, contact your insurer immediately – many offer hardship provisions including premium holidays (suspending payments for 1-3 months while maintaining some coverage), reducing coverage amounts to lower premiums, switching from level to stepped premiums for lower immediate costs, or payment plan arrangements. For policies held through superannuation, premium payment is usually automatic from your super balance, so missed payments are less common unless your balance is depleted. Never let your policy lapse without considering alternatives, as reinstating coverage later may be impossible if your health has deteriorated. If you no longer need the coverage, formally cancel rather than letting it lapse, as you might be entitled to surrender values or paid-up policy options.