![]() ![]() ![]() Investment and insurance products are not federally insured, may involve investment risk, may lose value andĪre not obligations of or guaranteed by any depository or lending institution. 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. Managing Money AD&D Insurance Life Insurance Home Insurance 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. 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! But the opportunity to reinstate is limited by time. 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. Term life insurance: 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. Permanent life insurance: 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: 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.Pay your premium annually - that’s one single payment to remember, rather than up to 12.How can I avoid missing premium payments? Some insurance providers offer a variety of payment options: The cost of those premiums, as well as the frequency, depends on the policy you select. How often do you have to make life insurance premium payments?Īs with other insurance policies, you’ll have to pay regular premiums on your life insurance policy. Read on for information on paying your premium, what happens if you fail to pay your premiums, and what happens if your policy lapses. The financial aspects of life insurance are of concern for many people considering purchasing a policy. ![]() ![]() Just like any other insurance policy, you must make regular premium payments to your life insurance policy for it to remain in good standing - and provide death benefits to your loved ones - even though you probably think about that policy a lot less than you do your auto or health insurance. ![]()
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