It is extremely important to never miss a payment on your life insurance policy. A lapsed life insurance policy could mean that your beneficiaries will no longer get the death benefits that are outlined in your policy. Without a life insurance policy, your love ones may have financial struggle if you were to pass away.
Many life insurance companies have a 30 to 31 day grace period, so if you’re a little late on one payment, don’t stress too much. However, if your payment is past the grace period or doesn’t come at all, you may lose your policy entirely. Making sure you have purchased a life insurance policy that you can afford is an effective way to avoid having a lapsed policy.
Selecting a payment schedule that you are comfortable is another way to avoid having your life insurance policy lapse. Premiums can typically be made monthly and annually. Another options to making sure you premium is paid on time is to select the auto-pay option, where your payment comes out of your account automatically. Keep your life insurance death benefits intact for your family by avoiding having a policy lapse.