Life insurance lapsed, so no benefit?

  • by Jordan Pouncey
  • Feb 22,2018
  • 16 answers

Life insurance lapsed, so no benefit?


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Insurance Answers (16)

Steve 6 months ago

Yes the scam works that way

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car253 6 months ago

A couple of questions everyone missed. What kind of policy was it? Term? Whole life? Universal life? Did the policy has any cash value or dividends that were available to pay the premiums for her? How many days late was she on the payments? The exact amount of days MATTERS. Contact the Department of Insurance or Insurance Commissioner in your area for help. Please post your state for more help.

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Casey Y 6 months ago

No, they are not helping because there was a contract and the other party didn't satisfy the terms. Its not about being greedy, its about a contract...nothing personal. If they are wrong, they would lose in court...
I would check her bank account and check on the provisions of the policy itself, but I get the feeling there will be no coverage afforded by that policy.
Its no different from your auto insurance, if they don't receive payment by the cancellation date (usually a grace period where they will reinstate) and you have an accident, they don't pay. Its a business transaction, nothing personal.
Sincerely sorry for your loss.

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babyboomer1001 6 months ago

Sorry about your loss. Sorry more for the news I'm about to give. What do you expect them to "help" with? When she stopped paying, the policy was cancelled. People decide to cancel policies all the time, for whatever reason. It was bad timing but, your mother did not keep up the policy so there is no money to get.

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StephenWeinstein 6 months ago

Correct that there is nothing you can do.
Incorrect that they are not helping "so they can keep the money."
They are not helping because they can't help.
They have to keep the money. Even if they wanted to give it to you, they can't.

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xm 6 months ago

check into the payment grace period and if there are any state laws that cover this.. if she died within the grace period then they should have had to hold it for the estate to process

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H. Marie 6 months ago

that's what happens when the payments are not kept up

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Ryan M 6 months ago

If you let your auto insurance lapse for 1 month and you get into an accident, do you think that your carrier should still cover you???? How is life insurance any different legally speaking????

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Beverly S 6 months ago

Seriously? If you don't pay on time it lapses. Just like if you don't pay the rent you get kicked out. When she passed if it was past due she did not have life insurance any longer.

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lucy 6 months ago

My guess is that prior to her death could have been very sick, thus not thinking correctly and could have forgotten her life insurance plus other bills. It is too bad that your mother did not set up automatic payments to be taken out of her checking account and if she had, then this would not have happened.
That is the reason why that most of my monthly bills are set up automatically taken out of my checking account in case I forget, am out of town on vacation, or if I become sick or in the hospital. I also have put my daughter on my checking account, so when I pass the account will not be closed and can be used to pay bills plus I have let her know what assets/policies I have, thus when I pass, will hopefully make it easier to handle my estate.
But with insurance, like one poster stated is in the grace period (which I think is 10 days max) then the policy will lapse and no payment will be paid on behalf of your mother.
Sorry for the loss of your mother and the life insurance.

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Insurance Pickle.com 6 months ago

That's correct. If it was in the grace period, you could get the premium in. But, that IS one of the big benefits of a cash value policy, because the cash can sometimes keep the policy in force.

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Valleycat1 6 months ago

nope. you could get a copy of her policy and read all the fine print, but most insurance companies have zero tolerance for missed payments.

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Kieth 6 months ago

She lapsed, if you can prove the lapse was due to her illness, you might have a case, but her policy is the rule.

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Steve D 6 months ago

Unless you can prove that your mother's policy was paid up to date, then the policy did lapse and she was no longer covered when she died. Insurance companies don't pay out on lapsed policies (otherwise, everyone would just let their policy lapse and expect to collect). It was incumbent on your mother (or her proxy) to make sure that the policy was up to date, it is not incumbent on the insurance company to reach out to customers (although they do) and keep the policy in place even if payment is not forthcoming.
Sorry, but you are pretty much out of luck.

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Dr Yes 6 months ago

Lawyer. Get one. You can get a no-obligation consultation with one cheap.

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Tavy 6 months ago

Sorry it is the same in the U.K. miss one payment and they cancel the policy.
Nothing you can do.

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