So you’ve just realized that your term insurance has lapsed and you’re not quite sure what to do about it. There is no need to panic. You have plenty of options. It is however important to act quickly. At IntelliQuote we encourage our customers to call us if they find themselves in this situation.
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Insurance companies often offer grace periods on their term insurance policies, meaning you might be able to reinstate your policy at the same rate! The grace period is generally 30-31 days after the final premium was due. If you find that you’ve exceeded your grace period, you can often submit an application for reinstatement. Once complete, you can often provide payment for your unpaid term insurance premiums and reinstate your policy.
It is however important to keep in mind that you will be asked to disclose any health issues that have occurred since your policy lapsed. If you have in fact suffered any health problems you may face higher premiums. In the case that you have developed a high risk or terminal health condition, you may not be eligible for reinstatement.
Avoid this Mistake in the Future
If you’re currently carrying term insurance, or you’ve just let it lapse, we encourage you to take the proper steps to avoid this happening again. Pay attention to communications from your life insurance company. They will likely provide plenty of warning as the date of lapse nears. Set up auto draft payments to ensure that your premiums are paid on time monthly, quarterly or annually.
If you’re currently in the market for term insurance we encourage you to request a quote today. You will receive an instantaneous quote comparison from top rated carriers. If you would like to receive more information about term insurance and other products, we also encourage you to follow our blog. Here we will be addressing these and other trending topics. While you’re here, be sure and read these recent related posts: