Lapsed Life Insurance Policy: What To Do If Your Claim Was Denied Due To Non-payment Of The Premium

By Author: Fulmer Sill Law
Total Articles: 95
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A lapse in coverage will occur if there’s a non-payment of the premium, resulting in the life insurance company NOT paying your listed beneficiaries.

If you have a life insurance policy that has lapsed due to non-payment of the premium by the life insurance company, it’s time to take action. Laws that control payment lapse or termination for the non-payment of premiums are updated quite frequently. This requires the life insurance companies to update their contracts and procedures, but sometimes they fail to do so promptly. Often, a lapse happens due to no fault of the insured. Lapse often occurs when the life insurance company cancels the insurance policy in error or an administrator for an employer-provided group life insurance failed to follow the law and processes.

There are two steps to take if your life insurance claim was denied due to the non-payment of the premium: