Article 2 of 5 in Understanding Your Life Insurance Policy
Life insurance monthly premium payments are required to keep your coverage active. If you miss a monthly life insurance payment, you will need to know the potential consequences and work with your insurance company to resolve the problem.
TIP: DO NOT avoid your insurance company if you miss a monthly life insurance payment! Work with them to avoid having your policy cancelled.
When You Miss Life Insurance Monthly Payment
If you missed your monthly life insurance premium, then you will probably still have coverage immediately after your payment was due. Typically, most life insurance policies have a grace period of 30 days to pay your life insurance premium. After that, the company can cancel the policy and may or may not allow you to pay back life insurance premiums or reinstate the policy. Sometimes this may depend on whether you can provide evidence of good health. Of course if you should pass away during this period and the premium has not been paid and there is no residual value to pay premiums in the policy, the beneficiary would not collect.
How to Protect Yourself from Cancellation
There are several things you can do to avoid losing your life insurance because you have monthly premium payments:
Bottom line, it is best to pay your premium when they are due to avoid costly replacement of insurance or a lapse in coverage!
TIP: If your monthly life insurance payment is too high, find ways to reduce the cost of your policy. If you have a permanent policy, consider switching to a cheaper term life plan. Term life policies offer the same death benefit for less money!
To find the best life insurance premium you will need to shop and compare quotes before you agree to a plan. To get started, visit the Free Advice life insurance quote center today.
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