What happens if I have to skip a premium?
At Indie, we don’t treat skipped premiums like traditional insurers 👴🏽 because we know ‘adulting’ is hard and we want to help you guys deal with those occasional cashflow issues. So we've kept it really simple: the amount of cover you have depends on how many premiums you’ve paid in the last 6 months.
Let’s break it down with an example:
Say you’ve been insured with Indie for a year now with R600 000 Indie Shield cover 🛡. In December you realise that that favourite aunt of yours is coming over and you have to buy some extra presents. The SMSs from your bank are becoming more and more ominous as the month goes by 😰 and, by the time your Indie premium has to be paid, there is not enough money left 🤢.
If you're with Indie, you don’t need to freak out and you don't have to start borrowing from the neighbours or scratching through all your bags and pockets for spare change to make it up in January. All that happens is that your cover amount is temporarily adjusted. After the premium has been missed at the end of December, we’ll confirm that you paid all your premiums except the last 1. So, out of the last 6 that were due, you paid 5. Your cover amount is therefore 5/6 x R600 000 = R500 000.
In January, we won’t try to debit two premiums 👎🏽 …just the one 👍🏽 (unless you’d like to make it up). If you’d rather skip January’s premium too (because...school fees, uniforms, new gym contract, etc.) we’ll also allow that. It would mean you'll have paid 4 out of the last 6 premiums, so your cover is 4/6 x R600 000 = R400 000.
📌 Of course this can't go on forever because eventually, your cover will go right down to R0, and at that point, sadly, your policy will lapse (aka, no more cover).
But...in this case, February rolls round and things are finally back on track 🤑 and you pay your normal premiums in February, March, April, May, June and July. By the end of July, we’ll look back and confirm that you paid all 6 of the previous premiums that were due and, just like that, your cover is back at R 600 000. 🕺🏾It’s a feature we like ourselves, which is why it’s part of all Indie policies.
So, how do most insurers handle skipped premiums?
You’ve heard the story…the one your dad tells directly after yet another rendition of how he had to walk 25 km in the snow, up-hill, with one arm tied behind his back to get to school? It goes something like this…
Once upon a time your Pops got life insurance (Go Pops!) so there’d be cash for you guys if something happened to him (perhaps on that 25 km journey in the snow?). One month, your Pops’ brother-in-law got a really bad (man) flu and was struggling to cover his medical bills, so your Pops gave him some cash to help out (legend). Thing is, this meant your Pops was a bit short on cash himself and couldn’t afford to pay that month’s insurance premium. His insurer at the time (let’s call ‘em Old-School Insurance.com) made sure they got that missed premium the very next month by debiting DOUBLE the premium amount from his bank account. But, your Pops didn’t have money enough to cover TWICE the premium (duh), so the debit order bounced and, just like that, his policy was cancelled and he (and also you guys) was no longer covered.
Talk about kicking a guy when he’s down. 😩
Now that you know that unlike traditional insurers, we’re not out to punish you for skipping a premium, perhaps you're ready to get some Indie insurance?