Life is unpredictable. While meeting daily responsibilities, some things fall through the cracks. For many, this includes missing insurance policy premium payments. When this happens, the policy can lapse, leaving you and your loved ones vulnerable without coverage.
The good news is that in most cases, a lapsed insurance policy can be reinstated. Here’s how you can go about reinstating your policy, and why acting quickly is essential.
When an insurance policy lapses due to non-payment of premiums, reinstating it can be crucial to continue the coverage and avoid buying a new policy at higher rates.
A policy lapses when you fail to pay the premium within the grace period specified by the insurance provider. Once lapsed, the coverage and benefits associated with the policy are no longer in effect. If the unexpected happens during this time — be it a medical emergency or loss of life — the benefits that the policy was intended to provide will not be available. Essentially, the safety net you once had is gone.
