One of the leading reasons policies lapse is not a lack of money — it is simply forgetting to pay. Setting up automatic payment closes that risk once and for all. Here is how it works and what to know.

The automatic payment channels available

  • Direct debit from a bank account — set up once, and the system collects on each due date. Suitable for monthly or annual premiums.
  • Credit card — convenient, and you get the card's credit terms, but it must be updated when the card expires or the number changes.
  • Other channels supported by each insurer, such as collection through an app or an e-wallet, with conditions that vary.

How to apply, generally

Tell your agent, use the insurer's app or website, or complete a direct debit consent form, attaching a copy of your bank book or card details as required. Then wait for confirmation, which may take one or two billing cycles before collection actually begins. In the meantime, pay any premium falling due through your usual channel.

Advantages beyond convenience

Besides removing the risk of forgetting, paying consistently on time keeps the policy continuously in force. You never enter the grace period or risk a lapse, health riders keep working without interruption, and you avoid restarting waiting periods through the reinstatement of a lapsed policy.

What to watch

  • Make sure there are sufficient funds on the collection date. If a collection fails, the system usually retries on a defined cycle — but do not rely on it. Check the result of each collection for the first few cycles.
  • Tell the insurer immediately if you change account or card. A common case is switching bank or receiving a new card and forgetting to update, only realising once the policy has entered the grace period.
  • Keep your contact details current so you receive notification when a collection fails.
  • Automatic payment does not mean ignoring the paperwork. Keep the record of each payment for your tax deduction and for later reference.

What to do if a collection fails

Do not simply wait for the next cycle. Contact the insurer and pay the missed instalment through another channel straight away. Cover remains in full during the grace period, so dealing with it quickly ends the matter quickly. Then fix the underlying cause — topping up the account or updating the card.

In short

Setting up automatic payment once buys the confidence that your cover will never be interrupted by forgetfulness. It is one of the best five minutes a policyholder can invest. If you still pay manually, ask your insurer or your agent which channels they support.