What Happens When You Miss Life Insurance Premiums Over 40?

Usually, if you miss premium payments on your insurance policy after the age of forty, your coverage lapses.

This means you are no longer insured, and if a claim arises during that lapse period, it will not be covered by your insurance.

If the insured person passes away, their beneficiaries may not receive a death benefit payout. This may also apply to cash value account payouts.

If you learned how to calculate your life insurance needs over the age of forty, you likely want to provide a safety net for your family or loved ones in the event of your passing away.

Finding life insurance for women and men over forty is simpler than you’d think, but finding the right policy for you and your needs can be more complicated.

Unfortunately, life happens, and premium payments can be missed–but not every policy cuts off your coverage at one missed payment.

Most policies offer a grace period, which is a short time after the due date, during which you can still make a payment without losing your insurance coverage.

You should always check your policy terms and conditions for these exact details because they can vary from policy to policy.

If your policy lapses, you will need to reapply for coverage. Depending on the type of insurance and your health status, this can be more difficult or result in higher premiums.

If you are concerned about keeping up with your life insurance premiums, there are a few things you can consider to make the process easier so you don’t fall behind and lose coverage.

Obligation-Free Life Insurance Quotes For Over 40s

Guaranteed Premium Life Insurance

A guaranteed premium life insurance policy is a type of policy that has stable, unchanging premium rates until the end of the policy’s term.

This means your monthly premium will not increase year over year. For example, if you have a guaranteed premium policy for fifteen years with a premium of £35 per month, this amount will not change over the fifteen years.

Most policies are reviewable, meaning the premiums can increase or decrease after the first few years.

Your insurer will review your premiums, health, and lifestyle each year to determine whether or not you are now in a higher-risk category. 

This is because pre-existing conditions affect life and health insurance after forty. A benefit of having a guaranteed premium is that you will always know exactly how much to budget for each month and each year. 

Premium Protection

Premium protection is when the insurer agrees to waive your payments if you cannot pay them for specific reasons. Some examples include if you are ill or injured and unable to work for a while. 

Without premium protection, your policy could be cancelled. With premium protection, your insurer agrees to pause the payments until you can pay again.

This feature typically adds another cost to your monthly premium, but it gives you breathing room should anything happen to you.

This protection only applies to specific situations, so review the terms of the protection plan before you halt any payments.

Plan Ahead with Insurance Hero

Life insurance after forty can sometimes feel stressful, especially when you want to protect your loved ones without breaking the bank. Insurance Hero makes finding the right policy for you simpler than ever.

Whether young, over fifty, or facing unique lifestyle factors like a high BMI, our expert team ensures you find the best coverage for your needs at competitive prices.

Let us save you time and money while securing peace of mind for you and your family. Contact us today to get your personalised quote.

Useful resources:

• https://www.stepchange.org/debt-info/insurance-debts.aspx
• https://www.experian.com/blogs/ask-experian/what-happens-if-you-stop-paying-life-insurance-premiums/