What happens if a life insurance policy lapses due to nonpayment of premiums?

When you buy a life insurance policy, the insurance company’s obligation to pay out is contingent upon whether you have paid your premiums. In other words, if you do not pay the insurance company, they will not pay you. How forgiving are insurance companies of nonpayment? Insurance companies typically have a “grace period” for making[…]

How does divorce affect the beneficiaries of a life insurance policy?

When taking out life insurance policies, spouses commonly list each other as the “primary beneficiary,” or the person who will receive payment if the policyholder passes away. Divorce, however, can complicate this process on several levels. The policy owner might want to designate a new beneficiary in place of their ex-spouse, while a parent with[…]