Why Do Life Insurance Policies Lapse?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Life insurance policies lapse if the premium is not paid on time. There is a one month grace period after the premium is due, and if the premium is not paid during that time, it will lapse. Reinstatement is possible but it will take evidence of health that has not changed since taking out the policy.
    Answered on May 2, 2013
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  2. 11783 POINTS
    Contact Me
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Usually insurance policies lapse because premium isn't paid towards the policy. Without premium, the policy goes into "lapse" which depending on which state you reside in can last between 30 to 60 days.  State insurance laws dictate the when a policy ends. You can be "reinstated" by paying the premiums due within that time period. If too much time passes you may have to reprove your good health to regain your policy.
    Answered on May 2, 2013
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