WEDNESDAY, MARCH 22, 2017
 Life insurance helps to minimize financial loss to your loved ones should you die while the policy is in place. Individuals work with their agent to select the right type of life insurance for their needs. They will then begin to make payments on that policy.
Should you die when the policy is in place, your beneficiaries will receive a death benefit. A death benefit is a specific amount of money paid upon your death. However, to have this level of protection in place for your family, you must maintain premiums.
Nonpayment Could Lead to a Lapse in Coverage
Your life insurance company may say that if you fail to make premium payments on time, your coverage will lapse. Lapsing is a term that describes a period of time in which you miss making payments. Your insurance policy will not cover you during that lapse, which means it won't pay a death benefit or other benefits that would otherwise be due during that period.
In most cases, there is a 30-day grace period. During this time, the law may prohibit the insurance company from outright canceling the policy. While you're within the grace period, you may have some or all the protection of your life insurance policy. That said, you may not be able to file a claim on this policy during a lapse — although that isn't always the case.
If you return to paying premiums and cover what was owed before the grace period is up, the insurer will likely re-open your ability to file claims. This removes your policy from the lapsing state and returns it to full coverage.
Continued Nonpayment Could Lead to Policy Termination
On the other hand, if you fail to pay your policy premium during the grace period, your insurance company may terminate the policy. That means that insurance completely cancels the policy.
Some types of life insurance have a surrender value. This is a value that you can collect if your policy gets canceled. However, not all policies offer this protection.
In some cases, your insurance company can re-activate your policy after termination. They can do so if you update your premiums and become current again. Some insurers may not allow reinstatement after a certain period of time without new assessments and a new policy selected.
If you cannot make payment on your life insurance policy, talk to your insurance agent. Pre-planning for this type of event is critical to protecting your investment, as you will likely lose your policy otherwise.
We can help you maintain your coverage, or find a new policy altogether. Call Raymond Longoria Insurance at (888) 296-0345 for a quick and easy Laredo TX life insurance quote today.
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