Reinstating a Lapsed Life Insurance Policy: Your Options

Life insurance policies generally lapse for non-payment of premiums. If you fail to pay the required premium, or a minimum premium outlined in the policy contract, your policy could terminate.

Time Frame

The life insurance company considers your life insurance policy lapsed when you fail to make the premium payment on the premium due date. However, you generally have 30 days after the due date to reinstate your policy without further evidence of insurability and without your contract being permanently canceled.

Significance

By paying your life insurance policy within 30 days of the due date, you keep your life insurance in force and prevent it from lapsing. This means that you don't need to reapply for life insurance and can keep your policy until it would ordinarily terminate.

Prevention/Solution

Make sure to pay your premium payments on time. Don't rely on the 30-day grace period because you may find out that you are unable to pay your premium within the specified time frame. Also, you should be able to comfortably afford your premium payments without relying on a grace period.