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[…]

The “They’re Better Off Without Me” Misconception: Life Insurance Claims and Suicide

When a family member or friend commits suicide, loved ones are left with a myriad of questions.  Could I have helped him?  Why didn’t she talk to me?  Did he ask for help and I missed it?  What do I do now?  Will I be able to obtain the death benefit from the life insurance[…]

Can You Appeal a Life Insurance Claim Denial?

The short answer is yes. A lawyer that specializes in life insurance claim denials can help you. Insurance companies will often stretch the law as far as they can when looking for a way to not pay a claim.  Enough people are unwilling to challenge them when they deny claims that it makes sense for[…]