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The grace period
Life insurance policies give you a window after the due date, commonly around 30 days, to pay without losing coverage. If you die during the grace period, the insurer pays the claim and deducts the overdue premium. Your policy states the exact length.
If the grace period runs out
A term policy lapses and coverage ends. A whole life or universal life policy with cash value may use that value to keep itself going for a while, through an automatic premium loan or by drawing down the account, but that reduces what the policy is worth.
Getting a lapsed policy back
Most policies allow reinstatement for a period after lapse, often several years. You will usually have to pay the missed premiums with interest and may need to answer health questions again. Reinstating soon after the lapse is far simpler than doing it later.
If money is tight
Call the insurer before you miss a payment. Ask about these.
- Changing the due date or payment frequency
- Lowering the coverage amount to reduce the premium
- Using cash value or dividends to cover premiums, if the policy has them
Common questions
Does a missed payment affect my credit score?
Life insurers generally do not report premium payments to credit bureaus. The consequence is loss of coverage, not a credit mark.
Is it better to reinstate or buy a new policy?
Reinstating keeps your original age-based pricing. A new policy is priced on your current age and health. Compare both.
This page is general information, not insurance, legal or tax advice. Policy terms, eligibility and pricing vary by insurer and state. A licensed insurance agent can explain the specific products they offer.