Kanetix Forum

What happens if I have to stop making payments on my life insurance policy?

I found the following information on the "Helping you understand insurance products section" of the Canadian Life and Health Insurance Association site*:

If you absolutely cannot make a payment on your life insurance, it's important to note that there is a 30-day grace period after the due date to pay your premium. If after that time 30-day period, you still cannot make a payment in full, the policy terminates or 'lapses'.

If you happen to die during this period, your death benefit is paid but any outstanding premium will be deducted from that payment.

(*once on the CLHIA site, click and download the brochure, "A guide to insurance" for more information: http://www.clhia.ca/e7_2.htm)

Also, don¿t forget to talk to your life insurance broker. They are there to help you and provide you with any additional information you may need.