Can automatic payments prevent a policy lapse?

Question

I would like to understand what happens if a life insurance premium is missed or a permanent policy no longer has enough value to support itself. As things stand, the policy has been in force for years. Because my family or work situation changed, I am reassessing whether the policy still matches its purpose.

Soradin · Accepted Answer

They can reduce missed bills, but account changes and increasing policy charges still require monitoring. As part of the policy review, a life insurance policy can lapse when required premiums are not paid or when cash value is insufficient to support charges. For this insurance planning decision, a lapse can end coverage and may also create tax consequences when loans or gains are involved.

Can automatic payments prevent a policy lapse?

Soradin

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