Burial Insurance
What Happens If I Stop Paying My Burial Insurance?
It depends on your policy type. Some policies have built-in protections, while others lapse immediately. Here's what you need to know.
Important Warning
Before you stop paying, contact your insurance company or agent. There may be options to reduce your premium, adjust coverage, or use accumulated cash value to keep your policy active.
The Grace Period (30 Days)
All burial insurance policies have a 30-day grace period after a missed payment. During this time:
- Your coverage remains fully active
- You can pay the missed premium to keep your policy
- If you pass away, the death benefit is still paid (minus the unpaid premium)
After the Grace Period: What Happens Next?
What happens after 30 days depends on your policy type:
Whole Life Burial Insurance (Most Common)
If you have cash value built up in your policy, you have these options:
- Automatic Premium Loan: Cash value pays your premium automatically
- Reduced Paid-Up Insurance: Keep smaller coverage with no more payments
- Cash Surrender: Cancel and receive the cash value (minus fees)
Term Burial Insurance
Term policies have no cash value. After the grace period:
- Your policy lapses and coverage ends immediately
- You may have 30-90 days to reinstate with back premiums
- Reinstatement may require new health questions
Options If You Can't Afford Your Premium
Can I Reinstate a Lapsed Policy?
Most insurance companies allow reinstatement within 30-90 days of lapse. Requirements typically include:
- Payment of all missed premiums plus interest
- A statement of continued good health
- Sometimes new health questions or underwriting
After the reinstatement window closes, you'll need to apply for a new policy (potentially at higher rates due to age and health changes).
Struggling With Your Premium?
Before you let your policy lapse, talk to us. We can review your current coverage and find options to keep you protected at a price you can afford.