If you purchased the entire life insurance, your insurance should continue to apply until you die, then death benefits are paid to your beneficiaries. If you have purchased a life insurance policy, it must continue until the expiry date of the insurance. Although you can cancel your life insurance at any time, the insurance company can only cancel for specific reasons. For example, your insurance company may not cancel your insurance if you fall ill, start an unhealthy habit (such as smoking or drinking), move to another area or purchase another life insurance policy.
Under what circumstances can your life insurance company cancel your insurance?
An insurer can only cancel a life insurance policy for one of two reasons ̵
Your life insurance premiums are paid on a specific date. After the date passes, most insurance companies allow a deduction period, usually 30 days. If you pay within the grace period, your life insurance policy remains in place. However, when the contract period has expired, if payment has not yet been received, the insurance company can cancel your insurance. If you ask, you may be able to get your policy back, but it is important that you act quickly. The more time that has passed since coverage has expired, the more problems you may encounter in solving the problem. To protect you from cancellation for non-payment, you can set up automatic payments of your life insurance premiums from your bank account or credit card.
Lying in your life insurance application is a reason why your police can be canceled. If there were errors in your application that the insurance company did not discover during the application process, your insurance may be canceled if these errors become known during the first or two years of the insurance (competition period). Cancellation of the insurance is not the only risk of providing false information about a life insurance application. If fraud is discovered after the insured dies, the life insurance company may refuse to pay the death benefits. To avoid cancellation of fraud, you must be completely truthful in your life insurance application.
What happens if you have a health crisis after buying life insurance?
If your health is suddenly in crisis after you purchase life insurance, continue to pay your premiums on time, and your insurance will be valid until your death (in the case of full life insurance) or until the end of the insurance period (in the case with life insurance). If you have full (permanent) life insurance, it may have accumulated cash value that you can borrow to help recover the costs of your medical bills. If your insurance includes a faster death benefit, you may be eligible to receive a portion of the death benefit while you are still alive. This benefit can be paid out in installments or in a lump sum. Our knowledgeable agent can advise you on your options with your existing life insurance should your health fail.