Life Insurance Lapse Lawyer

Countless people come to us for help after their life insurance claims have been denied due to lapsed policies. What that means is that an insurance company claims it did not receive a premium payment on time and, therefore, terminated the policy. Never give up on your claim if your insurance company denies a claim based on a lapse. Our attorneys skilled in appealing denials due to a lapse will fight for your right to receive a full and fair claim review, and we have a 100% success rate.

Many people not versed in insurance language have a hard time understanding all insurance terms in the policy and the laws surrounding lapse due to non-payment of premiums. Unless you are a very experienced life insurance attorney, you probably have questions about how an insurance company can deny a claim after the insured had diligently paid for the policy for many years. Unfortunately, this happens a lot and not many people pursue their claim denials with the help of an attorney. Our life insurance lawyers, however, we have achieved great results for beneficiaries who could not collect their payout due to a lapse.

Laws controlling lapse due to non-payment are complex and are always evolving. Insurance companies have an ongoing duty to update their contracts and practices according to new laws. However, not all of them are as diligent as we want to believe they are. Many insurers fail to adjust their policies to the new regulations, fail to inform insureds of an upcoming lapse, or fail to send proper premium-due notices to a correct address. All these and many other mistakes may be revealed on appeal and make an insurer liable on a claim. It means that if you hire an experienced lapse attorney, your chances of recovering life insurance money are much higher than if you were trying to get it on your own.

According to Bring Greenberg, CEO of True Blue Life Insurance, "in order for a life insurance policy to remain in force the owner is required to pay premiums when due. In the event that a payment is missed the life insurance company typically allows a period of 30 or 31 days for the premium to be paid. This period is commonly referred to as the grace period. At the end of this period if the premium remains unpaid the policy goes into a state of lapse."

We all get too busy and overlook some things, allowing bills to get overdue. Unlike a regular bill, however, non-payment of a life insurance premium can have serious consequences. Not only may a lapse in a life insurance policy cancel the policy, but it also can go unnoticed by the policyholder and the beneficiary for a long time if the insurer fails to send a cancellation notice timely. If you are a beneficiary on a life insurance policy that lapsed due to non-payment, you can still get your benefits if you can prove that the insurance company faulted in not sending the notice of cancellation in a proper manner. It is best to consult a life insurance attorney if your claim was denied due to policy cancellation.

Laws Governing Lapses in Life Insurance Policies

There is much case law governing the notice procedures to be followed by insurance companies when a policy lapses or terminates for non-payment of premiums. In some jurisdictions, the law says that the insurance company bore the burden of establishing the cancellation before the insured's death. The insurer can create a presumption that the insured received a notice of cancellation by describing the standard operating procedure used by the company to ensure that such notices are properly mailed or it can provide proof of actual mailing.

Under such statutes, the policyholder will be considered to have received the notice of cancellation if the insurance carrier mailed the notice to the insured's last known address, even if the insured never received the notice. Depending on the law of the state the beneficiary lived in, a beneficiary may be successful in challenging the manner in which a cancellation notice was mailed, therefore, invalidating the policy rescission and reinstating benefits.

What To Do If Your Life Insurance Policy Lapsed

When you pay your premiums regularly, your policy remains in force, but when you miss a payment, your life insurance company is required to give you a 31-day grace period in which you can pay the missed premium and have the policy reinstated. At the end of the grace period, if you haven't submitted your back premiums to the life insurance company, your policy will lapse.

When your policy lapses, you can request an application for reinstatement, answer health related questions and pay the missed premium. Each company handles the reinstatement process differently. In many cases, the policyholder will need to pay all of the back premiums, and will only have about five years within which to request a reinstatement.

Our law firm has overcome every single lapse case that we have undertaken. We have been paid 100% of the time on all cases retained. Many insurance companies try to concoct a lapse so they won't have to pay, while other times, the refusal to pay is unlawful. The life insurance company is required to send a lapse notice to the insured. Insurance companies try to deny coverage on policies when it should have been in effect.

If you own a whole life insurance policy that has accrued cash value, your insurance company will use the cash value to compensate for the premiums until it empties out. If the cash runs out, your insurance policy will lapse. For term life insurance holders, your policy lapses when the grace period for late payment ends and your payment has not been received. Once your policy lapses, your policy protection ends. This means your beneficiaries will not receive payment in the event of your death. Money you have paid in premiums is forfeited and your policy no longer has a cash value, if it was a cash value policy.

Reinstating your lapsed insurance policy may cost you money above-and-beyond the missed premiums. According to some insurance companies, to reinstate your policy, you may be required to fully pay all overdue premiums including interest. If you have taken loans before the policy lapsed, they have to be repaid to enforce the policy again. There are insurance companies that will give its holders a five year grace period to reinstate their lapsed insurance policies, but others have a much shorter period and you will not be able to reinstate after a lapse. You may also be required to retake a medical exam and your life insurance rates may go up.

Allowing an insurance policy to lapse can cause future problems when you look for a new insurance plan. Multiple cases of policy lapses result higher rates and premiums, and possibly even denial of your application. Some insurance companies will review your background and history of payment on other policies to make a determination. Most insurers will deny you in coverage if you have consistently failed to pay for insurance premiums in the past. You should us today to discuss your claim.

Why Hire Us?

Experience: All our lawyers have a minimum of 15 years experience handling life insurance claims. There are a handful of young lawyers with fancy sites who are doing more harm than good, and their clients who get denied again end up coming to us to get paid.

Professionalism: When you hire us to appeal your claim denial, you can be guaranteed that we will conduct the most thorough investigation possible and develop a strategic plan aimed at recovering the proceeds for you. We will keep you informed every step of the way and will present you with various options.

Availability: You will be able to speak with an experienced attorney every time you call our firm. We make sure an attorney is always available to discuss your case with you at any time of the day. We pride ourselves in being available to listen to our clients' concerns and help them in the fight with large insurance companies.

Low Contingent Fees: We work on a contingent fee basis. It means that you will not be charged unless we recover a life insurance payout for you. Only if we win your case, will we get paid. You will not owe any hidden costs or fees not discussed in our agreement with you. If your claim has been denied due to non-payment of premiums, call our top insurance attorneys. We know the laws and the insurance industry to help you get your claim paid!

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