Lapsed Life Insurance Policy

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kse

Mar 22, 2021
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The issue being presented here is in regards to a lapsed life insurance policy. I was informed by the company via the regular mail that I needed to get a hold of them because of an issue with the policy. Unfortunately, I didn't see the letter until it was too late. All of the payments were being made on time month after month. Then, the policy was lapsed, but the payments were still being accepted until someone apparently noticed and returned a payment. I sent a letter to the company explaining that all of the payments were being made and included copies of the bank statements indicating that was happening. I was still informed that the only way to reinstate the policy was to fill out the appropriate forms and get a physical per their reinstatement policy. This is a brief summary of what happened as there is more to this that I can go into later. Does anyone have any further ideas on how to approach getting this resolved.
 

VoR61

Jan 6, 2015
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I am not a life insurance agent or expert or an attorney, but it does seem logical that you must complete the forms and have a physical.

If you had died while the payments were still being made, your beneficiary could have, I think, appealed for benefits even though it was technically expired. Now that they have refunded a payment and caught their error, you have three choices it seems: continue without insurance, complete the forms and have a physical to be reinstated, or obtain a new policy elsewhere.

Also, once a policy lapses, even under normal conditions, the insured usually has to start over (as we have done) with a new physical and increased premiums.
 
Jun 24, 2019
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Generally, the number one reason a life insurance policy lapses is because the payments were not made. Since you say the payments were being made, there has to be a reason. I don't mean to pry, but the reason for the lapse could illuminate your issue and provide something the volunteers here could think about.
 

jsn55

Verified Member
Dec 26, 2014
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San Francisco
Generally, the number one reason a life insurance policy lapses is because the payments were not made. Since you say the payments were being made, there has to be a reason. I don't mean to pry, but the reason for the lapse could illuminate your issue and provide something the volunteers here could think about.
Exactly ... why did the policy lapse?
 
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Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
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www.promalvacations.com
Was this a term policy or a whole life policy? Term policies end after a certain time frame and then need to be renewed. The price usually changes and you have a certain time frame to renew.

Is that what happened? What did the letter say that you received in the mail? Did you receive the letter and just not open it?

This might help but we need to know exactly what the letter you received says.

 
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kse

Mar 22, 2021
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The following article is, I think, worth reviewing:

____________________________________________________________________________________
I reviewed this article and it seems that there are many similarities as to what happened here. BTW, I'm not the person that his happened to it was my father-in-law's policy that I was making the payments on.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
25,517
27,955
113
New York
www.promalvacations.com
____________________________________________________________________________________
I reviewed this article and it seems that there are many similarities as to what happened here. BTW, I'm not the person that his happened to it was my father-in-law's policy that I was making the payments on.
File a complaint with your States Insurance Dept.
 
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kse

Mar 22, 2021
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I did contact them previously, but I did not file a formal complaint with them. So, I will be doing that and let you know what happens.