You missed a payment on your life insurance policy, and you’re afraid that it’s going to lapse. We’ve seen this happen many times at Kriener Insurance and help Woodbury, MN, residents through this challenging period.
Most Companies Provide A Grace Period
If you miss a payment, your insurance company usually provides a grace period that allows you to catch up with your payment before they cancel your policy. These periods vary but typically last about a month. In this way, you can catch up with your payments and keep your policy strong.
If you miss your grace period, your company will cancel your life insurance policy. Some companies may have another grace period during which you can reinstate the policy and avoid any loss. However, this situation can often be hard to handle and require working directly with your insurance provider.
Reinstating Your Policy
Once your life insurance policy is canceled, your loved ones won’t get any payment if you pass, and you might be much harder to insure in their eyes. In addition, they may require you to pay more money for your policy or decrease the value of the procedures available to you.
These steps are not to “punish” you for missing a payment. Instead, they’re away for the insurance company to protect its investment. When you miss payments and allow your policy to get canceled, you show that you’re a risk and need to prove that you’re a good investment again.
Get the Policy You Need
As you can see, you need to avoid letting your policy lapse to ensure that you don’t run into any issues. Contact us at Kriener Insurance if you live in or near Woodbury, MN, and we’ll do what we can to help you out here.