What Happens if Your Disability Policy Lapses?

If you own a private disability policy, you are well aware that you must pay premiums in order to keep the policy in force.  Some insureds pay monthly by check, and others have premiums automatically withdrawn from their bank account periodically on a schedule set by the disability insurer.  Sometimes an insured fails to pay a premium, and the disability company cancels the policy.  In that event, you can sometimes have the company reinstate the policy, but often you will have to disclose your medical condition again and potentially suffer higher premiums.  Sometimes, the disability insurer will not even allow you to reinstate your policy.  In that event, all the premiums you paid to that point belong to the disability insurer, and you are out of a policy.

Sometimes the disability insurer gets it wrong.  So if you are on the receiving end of a lapse notice or cancellation, do two things without delay.  (1) Send all outstanding premium monies in right away and get a delivery receipt, and (2) Give the lapse notice to a seasoned disability attorney who can determine whether the policy was validly cancelled.

Gisonni Law Firm works tirelessly to defend the rights of insureds under disability contracts.  When you are need of legal advice, call our firm without delay.

Gisonni Law Firm focuses its practice on disability claims and litigation for disabled people in New York, New Jersey, and the tristate area.  For an understanding of your legal rights from the perspective of a highly experienced disability attorney, call Gisonni Law Firm today.