Denied Guardian Life Insurance Claim Denied

A lapse of payment can be a basis for a denied life insurance claim if the policyholder fails to pay the required premiums within the grace period specified in the policy. Our life insurance lawyers handle all denied life insurance claims. Here’s how a lapse of payment can lead to a denied life insurance claim:

1. Premium Payment Requirement:
   • Life insurance policies require regular premium payments to keep the policy in force. The policyholder is typically responsible for making these payments, usually on a monthly, quarterly, or annual basis, depending on the terms of the policy.
2. Grace Period:
   • During the grace period, the policyholder can make the premium payment without penalty and maintain the coverage.
3. Lapse After Grace Period:
   • If the premium is not paid within the grace period, the policy can lapse, which means it is no longer in force, and the insurance company is no longer obligated to pay the death benefit. The policyholder loses coverage, and any claims submitted after the lapse will be denied.
4. Death During Lapsed Period:
   • If the insured person dies while the policy is in a lapsed state due to non-payment of premiums, the insurance company will typically deny any claim made by the beneficiaries. The reason is that the policy was no longer active at the time of the insured’s death, and the insurance company has no obligation to pay the death benefit.