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Avoid a payment lapse to protect life insurance coverage

On Behalf of | Dec 8, 2021 | Insurance

No one wants to think about death or the loss of a beloved family member. Unfortunately, unexpected illnesses, accidents, and events happen each day and deprive families of members lost too soon to unforeseen incidents. The loss of a working individual can be detrimental to an Oklahoma family. To protect their loved ones and survivors, many individuals choose to take out life insurance policies to provide some financial support if they die.

As past posts on this blog have discussed, there are many reasons that insurance companies can deny life insurance payouts upon individuals’ deaths. The failure to make timely and complete payments on one’s life insurance policy can be the grounds for a claim denial in the future.

What does it mean to miss a payment on one’s life insurance policy?

Payments to life insurance companies are generally made periodically. Under some contracts, individuals may be required to make monthly or even quarterly payments. Others may be required to make payments once per year. Whatever their schedule, an individual must comply with the payment terms of their agreement to keep their policy active. Missing a payment, either through the failure to make a payment, making a late payment, or making an incomplete payment, can threaten the viability of the policy’s payout at the time of the policy holder’s death.

How can one avoid missing a life insurance payment?

There are different methods that individuals can use to keep up with their life insurance payments. They may set up automatic payments through their insurers or through their banks. They may even contact their insurers to try to change the terms of their payments to make them more compatible with the parties’ abilities to pay.

Missed payments can lead to cancelled policies and denied claims. Because life insurance is important, individuals should understand the importance of staying on their payment schedules. Problems with life insurance claims and denials can be discussed with readers’ trusted insurance law attorneys.