Life Insurance San Francisco - Have A Premium Back-Up Plan?
You are responsible. You
decided long ago to have a life insurance policy in place
for the benefit of those that depend upon you. Each month
you pay the premium, maybe even as an automatic deduction,
without giving it a second thought.
But what happens if you are incapacitated or somehow not
available to make that payment? What if the unthinkable has
occurred and someone else is handling your finances, or worse
yet, no one is taking care of your accounts for a month or two?
In many cases, should the life insurance premium fall through
the cracks, at a time when you may need it most, the policy
could lapse and cancel.
Fortunately starting January 1, 2013 there came into effect
a new law that requires insurers on new policies to allow for
60 days non-payment before halting coverage and after 30 days
to give notice of premium non-payment and potential lapse to
other parties you designate. Under the law you can choose one
designee that is unrelated to the policy and one designee who
is the assignee or has an interest in the policy, such as a
The catch is that you need to specifically tell your agent,
in writing, to add the names and addresses of these individuals
that are to receive notification. Your agent should have a form
for this and is also required to give you the option to change
those you want notified once each year.
We can only hope that this becomes standard practice on
existing policies that were written prior to 2013. It is
something few of us would think about and making a back-up plan
for premium payments would be worth discussing with your San
Francisco life insurance agent.
by Rob Smith 5/1/2013