Why It Lapses
If you don’t pay your premium, your long-term care insurance policy (LTC policy) coverage will lapse.
Protection From Lapsed Coverage
Most LTC policies have provide for lapse protection, in addition, to minimum requirements of state laws. Usually, the application requests the name of a designated individual who will receive a notice for nonpayment of the premium when it is 30 days overdue. The notice will include dates of when the payment is due, when the policy will be cancelled if payment is never received, and how to avoid termination of the policy. If the insured does not wish to designate a separate individual to receive this notice, then they must sign a waiver. Insured regulators know that older folks are sometimes more forgetful than younger people. This is the process of aging, so an anti-lapse protection is often built into the LTC policy.
What To Do If Your Policy Lapses
The ability to reinstate your coverage depends on the terms of the policy. In general, the process involves a formal request of reinstatement of coverage. Sometimes you have to submit medical proof and in some instances you don’t. If you or a loved one has had their LTC policy lapse, it is crucial to take immediate action and request reinstatement in order to avoid termination of the policy.
What Other Family Members Can Do
To help prevent your loved one’s LTC policy from being lapsed and terminated, there are certain cautionary steps that one can take. First and foremost, you should make sure that your loved one with LTC insurance has properly designated an individual to receive notice of nonpaid premiums. Additionally, you should verify that the name and contact information on the insurance policy are correct, and also act in a timely manner if you are the designated individual and you receive notice of nonpaid premiums. Other steps you can take is thoroughly read the various provisions in the policy, and also contact your LTC agent for information and guidance on how to properly handle a policy lapse and reinstatement, so a termination can be avoided.
An experienced long term care attorney retained early in the process can help you with your claim. For a complimentary consultation to review your claim and to learn how we can help you to obtain the benefits you are entitled to, contact us today.
