What Causes Life Insurance Policy Lapses? 
There are several reasons why life insurance policies lapse, and it’s essential to understand the cause before taking any action. One of the most common causes is missed premium payments. When a policyholder forgets to pay or is unable to meet the payment requirements, the policy can lapse. However, this isn’t always the fault of the policyholder. There are also times when insurers mishandle accounts, fail to send timely reminders, or even apply payments incorrectly, leading to unintended lapses. In some cases, a policyholder may also be unaware of the automatic deduction errors or adjustments that insurers make in their billing system. It’s crucial to understand the terms of your policy to avoid accidental lapses, but it’s equally important to recognize when a lapse may be due to an error on the provider’s part. Steps to Take When Your Policy Lapses Due to an Insurer Error
Dealing with a life insurance policy lapse can feel overwhelming, especially when you are facing the uncertainty of whether it was your fault or the insurer’s. If you believe that the lapse was due to an error on the insurer’s part, it’s important to know the right steps to take.
Review Your Policy Documents
Before you reach out to your insurance provider, take the time to carefully review all your policy documents. Look at the premium due dates, any grace periods for missed payments, and your payment history. If there were any changes to your payment terms or billing cycle, ensure you understand them. This will give you a clear understanding of your obligations and can help you identify any discrepancies when you contact the insurance company.Contact the Insurance Provider
Once you have reviewed your documents, get in touch with your insurance provider to discuss the lapse. Be sure to ask for a clear explanation of why your policy lapsed and whether it was due to any mistakes on their end. If they claim the lapse was your fault, but you believe it was due to an error, ask for written proof of the missed payments and any other relevant details that can confirm or refute the insurer’s claim. If the provider acknowledges an error, ask if your policy can be reinstated. Many life insurance policies allow for reinstatement within a certain period, especially if the policyholder can provide proof of good health and pay the overdue premiums.Request Reinstatement of Your Policy
If the insurance provider admits fault and confirms that your policy can be reinstated, they may require you to submit a written request or fill out a reinstatement application. If you missed premium payments, you may need to pay the outstanding balance, and in some cases, provide evidence that your health has not changed significantly since the policy lapsed. If the reinstatement is granted, make sure you get confirmation in writing that your policy is active again and that all benefits will be in place.
We contacted Trief & Olk to help us with a life insurance issue and Shelly Friedland was the attorney assigned to our case. Before Shelly took our case she explained to us that the likelihood of our success without going to court was possible but not likely. Unfortunately we did not get the outcome we had hoped for but it was our decision to not move forward and have our case litigated. Shelly is very knowledgeable and was very straight-forward in her assessment of our case as we moved forward. She was very patient and thorough in answering our questions. She always responded in a timely manner and listened to our concerns. We would certainly recommend Shelly and would use her firm again in the future.”
- John Ramig
If there is any possibility of winning your life insurance case – this is the place to do it for you. They are efficient, honest and will achieve the best possible outcome.
Shelly Friedland worked on my case where a life insurance policy had lapsed and was even a few days beyond the grace period. Farmers had rejected my claim twice and was unwilling to take a second look. Shelly was able to get them to pay the entire claim without going to court, and the full amount was deposited in my account within a couple months. Highest recommendation.”
- Kathleen Brown
Trief & Olk is a superior law firm. Their attorneys and other legal professionals have a brilliant understanding of the law and the litigation process. They diligently perform their work in an efficient, strategic and cost-effective manner to ensure the best possible outcomes for their clients.
- Christopher Hughes