If your loved one’s insurance company asserts it did not receive a premium payment on time and terminated your policy, you may have been told your life insurance claim has been denied. It’s critical to know, however, that a lapse in payment does not necessarily mean you are not entitled to collect life insurance benefits. In fact, the insurer may have broken the rules, which could have led you to lapse in premium payments.
All is not lost if your claim was denied. You may still be able to get the insurance company to provide a full claim review with the help of an experienced attorney.
Why Might a Life Insurance Policy Lapse?
A life insurance policy requires regular premium payments. When you miss a payment, the insurer must give you a grace period of one month to pay the missed premium. Catching up on payments allows you to have your policy reinstated, and your benefits will continue. If the grace period passes and you have still not made your missed payments, your policy will lapse. You can apply for reinstatement and pay the past premiums, but until then you will not be covered by life insurance benefits.
Life Insurance Policy Law Regarding Payment Lapses
According to numerous insurance laws, companies must follow strict procedures when a person’s policy lapses and the company is considering termination for non-payment. In some jurisdictions, insurance companies must cancel a policy before the insured dies. Many states also require insurers to take specific actions if an insured misses a payment.
These ever-changing laws that control payment lapse regulations require insurers to constantly update their contracts and practices. However, insurance companies may fail to do their due diligence to:
- Adjust their procedures according to new laws
- Fail to send bill notices to insureds
- Fail to notify insureds of an upcoming lapse
Failure to follow standard operating procedure might mean the insured was not responsible for missing a premium payment. These and other rules are what a skilled life insurance lawyer will investigate when determining if a beneficiary may be able to appeal his or her claim denial.
Get the Legal Help You Need
Missing a premium payment on a life insurance policy can mean cancellation and loss of benefits. If there was a lapse in payment and your claim was denied, it’s important to speak with an experienced life insurance attorney right away. He or she can find out if the lapse was caused by the insurance company’s error, and if so, file an appeal and seek the money you deserve from the policy.
Your loved one paid for life insurance to protect you after he or she is gone. A denied claim can be devastating news, and this is not the time to be fighting with an insurance company alone. Contact our life insurance lawyers today if an insurer denied your claim due to a lapse in payment. We can provide you with the state-specific rules regarding your claim and investigate whether the insurance company made an error that led to your lapse.
If you have questions, our firm can provide all the information in your free consultation. Call us toll-free today to seek the full life insurance benefits you deserve.
If you have questions, our firm can provide all the information in your free consultation. Call us toll-free today to seek the full life insurance benefits you deserve. (215) 531-7961