Can I Miss a Premium and Not Lose My Life Insurance Coverage?

Though the rules governing this do vary from state to state, most life insurance companies will allow you to miss a premium and not immediately be cancelled. This is known as a “Grace Period” and a policyholder is usually given at least 30 days to bring his or her account current before facing cancellation and loss of life insurance benefits.

If you fail to make the payment within the grace period, what actually happens next is based on the type of life insurance policy you own. If you have a basic Term Life insurance policy, it will be lost if it is not made current after the grace period passes. You typically will not get any money back from premiums paid thus far. If your have a Permanent Life insurance policy such as Whole Life insurance that has been earning cash value, most life insurance companies will transfer your owed premium from your equity account. This will keep the policy in effect for as long as you have cash value left to cover the premium – it is in this way that Permanent Life insurance policies are often said to have the ability to “pay for themselves.” However, if you run out of cash value, and you do not pay the premium, the policy also will lapse. When shopping for life insurance it is good idea to think about taking any options or riders that are often offered to keep paying your premiums if you become ill or disabled and cannot work.

Affordable Life Insurance Rates
Are Waiting For You!
Choose Your State

Related Information

What is Life Insurance? Why is it Important?

What is life insurance and how does it help families in the event of your death? It can help pay for the cost of funeral expenses, lost wages, debts, and more.

Read More

Insurance 101: How Life Insurance Works

This primer will help you learn how life insurance works and the different life insurance options you have to choose from.

Read More

Finding the Right Whole Life Insurance Policy

There are several different variations of whole life insurance. Read on to learn about different policies and how to determine the right one for you.

Read More

Term vs. Whole Life Insurance

Term life insurance covers you for a set period of time, while whole life policies last for the rest of your life. Learn more about how these types of plans differ.

Read More

Why Have Life Insurance?

Find out why it is important for you to have life insurance with these 7 simple reasons. Help protect your family from financial instability after you're gone.

Read More

Is There a Time When Life Insurance Expires?

Buying life insurance when you're young is a good idea. But does that mean it may expire once you reach a certain age?

Read More

What Is the Meaning of Life Insurance and Its Importance?

The importance of a life insurance policy is that it helps provide for the financial stability of your beneficiaries if you pass away.

Read More

The Best Definition | What Is Term Life Insurance?

Term life insurance pays a death benefit to the policy beneficiary if the policyholder dies within the term of the policy.

Read More

Life Insurance for 55-Year-Old

There are several life insurance policy options that are available for 55-year-old males. Learn more and find the best plan for you.

Read More