2 Yr Contestability and Premiums Timeline

[jeffdcar]

If a client dies on the 27th of the current month and premium(auto draft) is due on the 6th of the following month, does the client have to pay the premium that is due on the 6th in order to keep the policy in-force? Does it matter if this is also w/in the 2 yr contestability period? Thanks in advance!

 

[WinoBlues]

If a client dies on the 27th of the current month and premium(auto draft) is due on the 6th of the following month, does the client have to pay the premium that is due on the 6th in order to keep the policy in-force? Does it matter if this is also w/in the 2 yr contestability period? Thanks in advance!

The company should stop the Auto draft when notified of the death. No if the policy was paid current at time of death he is good. Well, not him, he is dead. If they pay the premium it will be refunded. Contestability is a different issue.

 

[John Galt]

The company should stop the Auto draft when notified of the death. No if the policy was paid current at time of death he is good. Well, not him, he is dead. If they pay the premium it will be refunded. Contestability is a different issue.

And Wino scores Filler Filler

 

[OldStandard]

Premium payments are due in advance, not in arrears, such as would be the case with a home mortgage loan. So the following month life insurance premium should not be due. There may also be a very miniscule prorated refund of premium due for 28th to the end of month. It would be interesting to see what the policy says. Best wishes.