Did you let your term life insurance policy lapse due to personal or financial reasons? Or maybe you simply forgot to make a payment? Some life insurance carriers will allow you to reinstate your life insurance policy after letting it go into a state of lapse. Wondering what a lapsed life insurance policy is and how it happens?
- It's a term life policy that has gone unpaid within the 30 or 31 day grace period allotted by your life insurance carrier.
- The grace period is the amount of time you have to make a payment on your policy after your initial payment is due.
- After the grace period ends and no payment has been made, your life insurance policy will go into a state of lapse â?? leaving your family unprotected if you were to die today.
If you own a permanent life insurance policy, the lapse process is a little different. During the first couple of years that you own the policy, where there is little to no cash value, your policy will lapse if a payment is not made within the grace period. However, if you have a large cash value built up, you can elect to buy features that will help you catch up on unpaid premiums. To find out if your lapsed life insurance policy qualifies for reinstatement call your life insurance agent. Or, you can get an affordable life insurance quote to prevent a future state of lapse.Â Call the experienced life insurance professionals at AccuQuote today at 800-442-9899. They can answer your questions and give you free term life insurance quotes.