If you are visiting this page because someone close to you passed away and you recently found out that the life insurance policy they had has lapsed, we understand how you might be feeling. There may be sadness, confusion, or even frustration. You may not know what to do next or whether there is still any chance of receiving the benefits that were meant for you. It can be overwhelming, especially at a time when you are already grieving. If you need help, you are in the right place. This is something that can be fixed in many cases, and you are not alone.
Understanding What It Means When a Life Insurance Policy Lapses
A life insurance policy lapse happens when the payments for the policy are not made on time. Most policies need monthly or yearly payments, which are called premiums. If these are missed for too long, the policy may end. That means the insurance company may say they no longer have to pay out the money that was promised. This can be very upsetting for families who were counting on that money to help after losing a loved one.
But just because a policy has lapsed does not always mean the case is closed. There are many reasons a policy might have lapsed. Sometimes the person who had the policy was sick and forgot to make the payments. Sometimes the insurance company did not send the proper notices. In other cases, the company may have made mistakes. These details matter a lot and can change the outcome.
Looking at Why the Policy Lapsed
When trying to figure out what happened with the policy, the first step is understanding why it lapsed. Was the person who had the policy informed about the missed payments? Did they receive a warning letter from the insurance company? Was there an automatic payment system that failed? These questions are very important.
Insurance companies are required to follow certain rules. In New York, they must send notices to the policyholder before canceling a policy. If they failed to do that, you may have a strong reason to ask for the benefits to be paid. In many cases, courts have ruled in favor of the family when the insurance company did not follow the correct steps.
Gathering All the Paperwork
If you are facing a life insurance lapse, start by gathering all the paperwork you have about the policy. This includes letters, emails, premium notices, and any payment records. Also collect any medical records or notes if the person was ill or had trouble managing their bills. These details can help show that the policy should not have ended.
Getting a copy of the policy itself is very helpful. The policy document will have the rules that the insurance company agreed to. It will also say what the company must do before they cancel the policy. You should also try to get any letters or emails the insurance company sent before the lapse.
What You Can Do to Dispute the Lapse
If you believe the policy lapsed unfairly, there are steps you can take. First, you can write to the insurance company to ask for a full explanation. Ask them to send a detailed letter that explains why they say the policy ended. Ask for a timeline of missed payments and notices sent. Make sure you do this in writing so that you have a record.
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
If the insurance company does not give you a good answer, or if they refuse to pay, you may be able to challenge their decision. Sometimes this can be done through a legal complaint. In other cases, a strong letter from a legal team can change the outcome. Many families who thought they had no hope were able to receive the full value of the policy after taking action.
Common Reasons a Life Insurance Lapse Might Be Wrong
Some of the most common reasons that a life insurance lapse can be challenged include mistakes by the insurance company. For example, if they did not send the required letters to the right address, or if they canceled the policy too soon, those may be grounds to fight their decision. Another reason may be if the person had a mental health issue or medical condition that made it hard for them to manage their affairs. In New York, laws protect people in these situations.
Another issue could be with automatic payments. If a bank error or system failure caused the payments to stop, and the person was not told, that can also be a strong reason to ask for the policy to be reinstated. If the company accepted a payment after the policy supposedly lapsed, that may also help your case.
Settlements & Verdicts
Timing Matters So Act Quickly
It is very important to act fast if you are dealing with a lapsed life insurance policy. The longer you wait, the harder it may be to get the information and records you need. Some insurance companies may have strict deadlines for making a claim or sending an appeal. Do not assume that just because they denied your claim once, that it is final.
Families in New York have won cases after being told there was no chance. The key is to act quickly and gather the right evidence. A strong case takes time to build, and every detail counts.
How a Legal Team Can Help You Win Your Claim
Trying to fix a lapsed life insurance policy on your own can be very hard. The laws are complex, and the insurance companies have teams of lawyers on their side. That is why having someone who knows the system can make a big difference. A legal team can look at your documents, deal with the insurance company, and help you understand your options. They can also help you avoid mistakes that could hurt your case.
Sometimes, just having a strong advocate on your side can lead to a faster and better result. Insurance companies take these cases more seriously when they see that a family is being guided by someone who knows how to fight back.
You Still Have Options Even After a Lapse
If you are a beneficiary of a life insurance policy that lapsed, do not give up. You still have rights. The insurance company may want you to think that there is no way to recover the benefits, but that is not always true. Many families have been able to recover the money they were promised, even after the policy was said to be canceled.
You may feel lost right now, but this is a problem that can be solved. With the right help, you can move forward and get the support that was intended for you.
Call Us Today to Get the Help You Deserve
If you are going through this situation and don’t know what to do, you can talk to someone who understands. At Trief & Olk, we know how hard this time can be, and we want to help you feel more confident about what happens next. We have helped many families in New York deal with life insurance issues, and we are ready to listen to your story.
Reach out today and let us help you see if your case can be reopened or appealed. You may be much closer to a positive result than you think. Getting started is simple, and your first conversation with us is free. Let Trief & Olk guide you through this. You don’t have to face it alone.
