Understanding Life Insurance Lapse in Massachusetts
A life insurance lapse typically occurs when the policyholder fails to make premium payments on time. Life insurance companies usually provide a grace period, during which the policyholder can still make a payment and keep the policy active. However, if the grace period expires without payment, the policy lapses, and coverage ceases. This lapse can leave beneficiaries with no benefits unless certain legal actions are taken to challenge the lapse or recover benefits. In Massachusetts, insurers are required to notify policyholders before a lapse occurs, giving them a final opportunity to pay the overdue premium. If a policy lapses due to non-payment, it is usually considered terminated. However, there are some circumstances under which the policy may be reinstated, such as if the policyholder can prove that they missed payments due to certain extenuating circumstances, including illness or incapacity. For beneficiaries, a lapsed policy means that the benefits they were promised may not be available when the policyholder passes away. However, Massachusetts law provides some protections for beneficiaries in cases where the policyholder’s failure to pay premiums was not intentional or where the insurance company did not follow proper procedures before canceling the policy.
Legal Rights of Beneficiaries in a Life Insurance Lapse
When a life insurance policy lapses, beneficiaries may still have legal recourse. Massachusetts law protects policyholders and beneficiaries from arbitrary cancellations and requires insurance companies to follow specific procedures before terminating a policy. If the insurer fails to adhere to these requirements, beneficiaries may be able to challenge the lapse and seek recovery of benefits. One common issue arises when the insurance company fails to send proper notices to the policyholder, warning them of the impending lapse. Insurers are legally obligated to provide a grace period and notify policyholders before a lapse occurs. If these notifications were not sent in compliance with Massachusetts law, beneficiaries may have grounds to challenge the lapse and claim the life insurance benefits. Additionally, if the policyholder was incapacitated or otherwise unable to make payments, beneficiaries might be able to argue that the lapse was not intentional and seek reinstatement of the policy. Beneficiaries should consult with a qualified attorney to explore their options when dealing with a lapsed life insurance policy. Legal action may be necessary to hold the insurance company accountable and ensure that the benefits are paid. Each case is unique, and the specific facts surrounding the policy lapse will play a critical role in determining the available legal options.
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