Many insurance providers are more than willing to work with you to catch up on payments and bring your policy back into good standing. This can be referred to as a grace period in insurance.
March 24, 2023 3 min read
Just like any other insurance policy, you must make regular premium payments to your life insurance policy for it to remain in good standing — and provide death benefits to your loved ones — even though you probably think about that policy a lot less than you do your auto or health insurance.
The financial aspects of life insurance are of concern for many people considering purchasing a policy. Read on for information on paying your premium, what happens if you fail to pay your premiums, and what happens if your policy lapses.
As with other insurance policies, you’ll have to pay regular premiums on your life insurance policy. The cost of those premiums, as well as the frequency, depends on the policy you select.
Some insurance providers offer a variety of payment options:
What happens if you miss your life insurance payment depends on the type of life insurance you have:
These types of insurance, like whole life insurance, often have a cash value that may grow over time. If you stop making payments but your policy has built up sufficient cash value, it could be used to cover the cost of your premiums to keep the policy active. If the cash value amount is not sufficient to provide a benefit for your whole life, your policy will officially lapse, and your life insurance benefit will end when premiums are not paid when due.
If you miss a premium payment on a term life insurance policy, the grace period to bring your account back into good standing begins — after which the policy will lapse.
Your life insurance contract will detail when your premium is due and what happens when premium is not paid on time. When your policy is delivered, take time to read the contract to see what your specific rights will be.
Your grace period — the amount of time you have to make a payment after the due date and bring your life insurance policy back to good standing — is usually 30 days, but it depends on your policy and insurance provider.
Double check your policy documents or ask your insurance provider’s customer service department if you’re unsure of your policy’s grace period.
Individual insurance companies have differing policies, so if you’re past your grace period, review your insurance contract and call to find out whether your life insurance policy can be reinstated.
In some cases, it’s as simple as filling out a reinstatement application and paying the difference in premium since your policy lapsed. In others, you may have to undergo a medical exam to ensure your health condition hasn’t changed dramatically since you purchased the policy.
Bottom line: The right to ask your insurer to reinstate a life insurance policy is often included in life insurance policies when you’ve missed a payment. But the opportunity to reinstate is limited by time. So, familiarize yourself with this important option in case your coverage ends when premiums are not paid. Many insurance providers are more than willing to work with you to catch up on payments and bring your policy back into good standing. But you’ll never know if you don’t try.
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment (known as a death benefit) to beneficiaries—a designated person or group that receives the benefit—upon the insured person’s death.
6 min read 
Learn about term life and whole life insurance - and how they differ. Protect your family's future by getting the life insurance that fits your needs.
5 min read 
It’s completely normal to feel confused when you’re in the process of shopping for life insurance. Besides the policy details, costs and coverage options, one additional thing to consider is the insurance company. Choosing a reputable company could make a difference in the quality of service and overall value of your policy.
4 min readCall now and connect with one of our licensed agents in your area. No pressure. Just friendly helpful information. Our hours are Monday - Friday, 7 AM - 9 PM CT (Saturday 8 AM - 4 PM CT).
TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Securities distributed by CUNA Brokerage Services, Inc., member FINRA/ SIPC, a registered broker/dealer, 2000 Heritage Way, Waverly, IA, 50677. Investment and insurance products are not federally insured, may involve investment risk, may lose value and are not obligations of or guaranteed by any depository or lending institution. All guarantees are based on the claims paying ability of the underwriting company. Insurance products are issued by CMFG Life Insurance Company, MEMBERS Life Insurance Company, CUMIS Insurance Society Inc., CUMIS Specialty Insurance Company Inc., American Memorial Life Insurance Company, and Union Security Insurance Company.
America’s Best Insurance Companies 2024 scores were based on the responses of 15k consumers in categories: overall recommendation, satisfaction, loyalty, advice, customer service, price/performance, transparency, digital services and damage/benefit service. This award is based an independent survey of 3,200+ companies. TruStage’s Permanent Life Product, underwritten by CMFG Life Insurance Company ranked #9 in the Permanent Life Category.
Please view these important product-specific disclosures:
Corporate Headquarters 5910 Mineral Point Road, Madison WI 53705
© TruStage. All Rights Reserved.
