Reasons your life insurance policy can be cancelled

Life insurance is an important part of most people’s financial portfolio. It provides peace of mind that your loved ones will be taken care of in the event of your death. Making sure it is active and will provide the protection you are counting on is important. At Don Allred Insurance in Burlington, NC, we have more than 40 years of experience minimizing our customer’s risks. As an independent agency, we can offer the finest in service and place customer’s needs first. 

Non-payment

The most common reason for life insurance to be canceled is non-payment. It can happen to anyone but letting your life insurance premium go unpaid is never a wise idea if you plan to keep the policy. Most companies will allow a 30-day grace period after the due date for you to make the payment. If there are extenuating circumstances you might be able to get an additional 30 days before your policy lapses. If you have a whole life policy you do have some other options. You may be able to use your dividends to pay your policy. Your policy may have a waiver of premium rider. If you have cash value that can also be used to offset your premiums. 

If you are having financial difficulties by all means contact your agent and discuss your options. It may be you need to get a less expensive term policy to get you through the difficult times. 

Fraud

Insurance companies take a very dim view of any attempt to defraud them. Never lie on your application. If you have pre-existing conditions that you fail to include on your application, they will cancel your policy if it is discovered. Even worse is the fact they can refuse to pay a claim if the fraud is discovered. 

Contact Don Allred Insurance in Burlington, NC for all your insurance needs.