Did you know: The dollar amount of death benefit payouts that seniors forfeit annually through lapsed, or surrendered life insurance policies is $112 billion! (2015). This is more than the net worth of either Mark Zuckerberg (Facebook) or Jeff Bezos (Amazon)!
That is $112 billion worth of cash value down the drain. These could have been death benefits, inheritance, or donations to charities. This is $112 billion that insurance companies get to retain. All because policyholders surrendered their policies or allowed them to lapse.
A life insurance policy lapses when a premium isn’t paid. This results in all benefits of the policy being lost!
However, there is a brief grace period during which a premium payment for the life insurance policy can be made.
Yes, there are a few circumstances in which the life insurance policy can be recovered.
In short, pay your premiums.
Most insurance companies can automatically withdraw the monthly payment from a bank account.
Some companies may take missed premium payments out of the policy’s cash value. Note: term life insurance has no cash value.
If you’re in danger of a lapse, contact me today. Together we can review your financial strategy to help you and your loved ones stay covered.
Allianz has released an update regarding insurance coverage. Other insurers will have similar impacts. Known…
As of February 22, 2026, Allianz Global Assistance has classified the situation in the affected areas…
Tugo states that their rates will increase on Feb 18th. The average cost and severity…
Their tax rate card lays out the marginal tax rates for each income range for…
RRSPs can help you: Save on taxes today Grow investments tax deferred Be used for…
If you currently don't have an employer group plan for health insurance, Manulife is allowing…