I accidently let my Life Insurance Policy Lapse, what should I do?

Answer:
Contact your insurance company immediately.

If you missed a life insurance premium, you may have a grace period in which you can make the payment and avoid cancelation. This grace period is set by state law and can be up to 30 days. Check with your state’s department of insurance for details about grace periods in your state.

If your life insurance policy has actually lapsed, call the insurance carrier and see if they will reinstate the coverage. Reinstatement of life insurance is at the discretion of the insurance company. For insurance companies that allow reinstatement, you will need to be prepared to pay all past due premiums and declare that you are unaware of any losses that have occurred since the policy lapsed. Depending on how long your insurance has lapsed, the amount of past due premiums could add up.

Some states have further statutes to protect against life insurance lapses. For example, what if the insurance agent who collects your premiums goes on strike? Depending on where you live, your policy might not be cancelled due to non-payment during the strike. Your state’s department of insurance can help you wade through the different complexities.


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