A lapsed life insurance policy means that a policyholder missed premium payments and the coverage is no longer active. In most cases, a lapsed policy won’t pay out after the insured person dies. But there are exceptions.
If you’re dealing with a denied or delayed life insurance claim, one of the first questions that often comes up is whether the policy could or should have been converted from term to permanent coverage before the insured passed away.
During the COVID-19 emergency, New Jersey required life insurers to give policyholders extra time to pay their premiums. A class action I’m handling alleges that United of Omaha Life Insurance Company, a subsidiary of Mutual of Omaha, cancelled New Jersey policies without honoring those protections. If your New Jersey life insurance policy lapsed in 2020…
