Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance agency where you can get life insurance on your terms. I’m Jeanna and I’m Natasha. Today’s question is: What will happen if I can’t pay my life insurance premiums on time? Whether you just forgot to send in a check or an emergency drained your savings you have some options if you missed a life insurance policy payment. All term life insurance policies have a grace period. Most grace periods are roughly 30 days. As long as you make the payment and the insurance company receives and processes it within your policy’s grace period your policy will not lapse. A lapsed policy means that the policy is no longer active. If your policy lapses and you die, your beneficiaries will not receive a death benefit. But what happens if you missed a payment and you die during the grace period? If your premium was due on April 30th and you die on May 5th the insurance company will still pay your beneficiaries the death benefit. However, they may deduct the premium owed. So, if you miss making a payment and you don’t get the premium paid within the grace period, are you out of luck? No. If your policy lapses because you didn’t make a payment you still have options if you don’t want to lose your coverage. Your life insurance policy likely has a reinstatement provision. This means you have the option to reinstate or reactivate your policy within a certain time period. But you may have a few hoops to jump through. Each company has certain requirements that you as a policy owner must meet to be able to reinstate your policy. These requirements include applying for reinstatement within a certain time. Companies have different reinstatement periods but most will allow you to apply up to five years from the end of the policy’s grace period. Providing a health statement. The insurance company will ask you to answer some health questions to ensure you have had no significant health changes since you originally purchased the policy. Getting another medical exam. If some time has passed since you first purchased your policy you may be required to get another medical exam before your policy can be reinstated. Paying all overdue premiums. To be approved for reinstatement you will be required to pay all of the premiums due from the end of the grace period. If you’ve let your policy lapse for a few years this could be a significant amount and it may be better to buy a new term policy altogether. If the reason you missed your premium due date is because life got a little crazy and you simply forgot to send in a check, consider switching to an automatic payment method. All major life insurance companies offer the ability to automatically draft your premium payments from your checking account. Thanks for watching. If you have any questions about life insurance, make sure to leave us a comment. And if you have any questions regarding today’s topic, check out the blog link posted below. Otherwise, tune in next week when we talk about the new 40-year term policy option. Bye!