Hey everyone,
I totally spaced on my life insurance premium this month (yikes!). Luckily, I caught it before things got too out of hand, but it got me wondering - what exactly happens if you miss a payment or stop paying altogether? Does the policy vanish into thin air? Are there any grace periods or ways to get back on track?
Hoping someone here with life insurance wisdom can help
If you miss a life insurance premium, there’s usually a grace period to catch up (usually around 30 days). If you still don’t pay, your policy could lapse, meaning you lose coverage. Some policies allow reinstatement if you pay missed premiums within a set time. Check your policy details or ask your insurer for specific advice.
Unlike term life, stopping payments doesn’t automatically cancel your coverage. With permanent policies, you can choose to cash out the money you’ve accumulated and stop paying premiums, but this means giving up your life insurance benefits.