SIPC, a registered broker/dealer, 2000 Heritage Way, Waverly, IA, 50677. its subsidiaries and affiliates. Securities distributed by CUNA Brokerage Services, Inc., member FINRA/ TruStage™ is the marketing name for TruStage Financial Group, Inc. Many insurance providers are more than willing to work with you to catch up on payments and bring your policy back into good standing. So, familiarize yourself with this important option in case your coverage ends when premiums are not paid. But the opportunity to reinstate is limited by time. In others, you may have to undergo a medical exam to ensure your health condition hasn’t changed dramatically since you purchased the policy.īottom line: The right to ask your insurer to reinstate a life insurance policy is often included in life insurance policies when you’ve missed a payment. In some cases, it’s as simple as filling out a reinstatement application and paying the difference in premium since your policy lapsed. Individual insurance companies have differing policies, so if you’re past your grace period, review your insurance contract and call to find out whether your life insurance policy can be reinstated. Your grace period - the amount of time you have to make a payment after the due date and bring your life insurance policy back to good standing - is usually 30 days, but it depends on your policy and insurance provider.ĭouble check your policy documents or ask your insurance provider’s customer service department if you’re unsure of your policy’s grace period.Ĭan a lapsed life insurance policy be reinstated? What is the grace period on a life insurance policy? When your policy is delivered, take time to read the contract to see what your specific rights will be. Your life insurance contract will detail when your premium is due and what happens when premium is not paid on time. If you miss a premium payment on a term life insurance policy, the grace period to bring your account back into good standing begins - after which the policy will lapse. If the cash value amount is not sufficient to provide a benefit for your whole life, your policy will officially lapse, and your life insurance benefit will end when premiums are not paid when due. If you stop making payments but your policy has built up sufficient cash value, it could be used to cover the cost of your premiums to keep the policy active. These types of insurance, like whole life insurance, often have a cash value that may grow over time. What happens if you miss your life insurance payment depends on the type of life insurance you have: Permanent life insurance What happens if you miss a life insurance payment? Set up an electronic funds transfer (EFT) or other regular withdrawal through your bank to automate the payment process.
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