Can't Afford Life Insurance Premium Due to COVID-19 Disruption?
Thousands of people worldwide have already died from COVID-19, the disease caused by the novel coronavirus. For those who have life insurance, in almost all cases, they are covered, and insurance will likely pay out for deaths from COVID-19.
What is you can no longer afford to pay life insurance premiums?
Didn’t pay insurance premiums.If your policy lapses for nonpayment and you die before the policy is reinstated, your beneficiary usually won’t receive a payout. When a premium payment is late, life insurance companies often offer a 30 days grace period. Your coverage will continue as long as you pay the insurer during this time. Insurers may extend this grace period during the coronavirus pandemic — some state regulators are requiring it.
In California in response to the disruption caused by the outbreak, Insurance Commissioner Ricardo Lara is requesting that all insurance companies provide their insureds with at least a 60-day grace period to pay insurance premiums so that insurance policies are not cancelled for nonpayment of premium during this challenging time due to circumstances beyond the control of the insured. This request is directed to all admitted and non-admitted insurance companies that provide any insurance coverage in California including, life, health, auto, property, casualty, and other types of insurance.
If you’re having trouble making payments, contact your insurance company before your premium is late. Otherwise, your insurance coverage will end until you apply for reinstatement and your insurer agrees. To qualify for reinstatement, you may need to prove that you aren’t a risk to insure.
For more information about Life Insurance call JCT Insurance at (626)354-2000 or email firstname.lastname@example.org