Term Life Insurance Georgia GA
Reader’s Question:
I just moved to Georgia the past month and failed to pay the premiums for my term life insurance due to the heaped up things to do when I was moving. What will happen to my policy for such failure to pay?
Vince
Savannah, GA
Very interesting question Vince!
Same thing happened to my term life insurance policy last year. I missed to pay a premium due and I was given a 30 day grace period to pay the premium. But it still depends on the insurance company and the type of insurance policy you have. Some Georgia insurance companies would be strict about lapsed payments. Failure to pay within the grace period means that the policy will certainly lapse.
However, you may be able to reinstate with evidence of insurability depending on your policy’s provisions. With your authorization, the company can draw from a permanent policy’s cash surrender value to keep your policy in force (that is if, your policy has sufficient cash value). For term insurance, this is not applicable due to the absence of cash value. In most flexible premium policies, premiums may be reduced or skipped as long as there is sufficient cash value that remains in the policy.
The best thing you can do is to call your insurance agent in Georgia so you’d be assisted on your issue.
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