Long-Term Care Insurance Policy Reinstatement

If you are one of the millions of Americans who purchased a long term care insurance policy, you understand the benefits of planning ahead. You understand the high probability of requiring at least some form of long term care in the future. Therefore, you took proactive action to protect yourself. 

You purchased this policy with the expectation that when the time came it would be there for you. Unfortunately, this is not always the case. Like any insurance policy, the insured must continue to pay premiums in order to keep coverage in force. If premiums are not paid, your policy will lapse due to non-payment. In some cases, an insured may make a conscious decision to stop paying premiums and allow their policy to lapse. However, in other cases, an insured may accidentally miss a premium payment. The result is an unwanted cancellation of coverage. Often, an unintentional lapse can be devastating for the insured. 

If an unintentional lapse occurs, there may be recourse available and, in some cases, the insured may be able to reinstate coverage. However, the process for reinstatement is highly complicated and technical. If you or a loved one has unintentionally lapsed a policy, please seek legal advice as soon as possible. In the case of a lapsed policy, time is of the essence. The law offices of Steven M. Dunn, P. A. has significant experience in reinstating long-term care insurance policies. Make an appointment to discuss your options today.

Long-Term Care Insurance Policy Reinstatement

Why do LTC insurance policies lapse?

Long term care insurance policies lapse due to the policy owner failing to pay the premiums. This may happen for several reasons:

  • The policyholder is unable or does not want to continue making the required payments for the policy. This may be either because their financial situation has worsened, making these payments too burdensome, or because the policyholder has determined that the payments are just too high for the benefits they might be getting.

  • The policyholder missed the premium payment notice or forgot to make the payment on time. 

  • The policyholder was hospitalized or functionally impaired to the extent that the impairment affected the policyholders ability to pay on time. 

  • Or, the policyholder is suffering from a cognitive impairment and can no longer manage their finances properly.

 

What happens when a long-term care policy lapses?

An unintentional lapse of a long term care insurance policy can have devastating consequences for the policyholder. Due to the harm an unintentional lapse can cause, both your policy and the law provide some form of protection as well as recourse to get your policy reinstated. 

One protective measure mandated by law is the requirement for insurance companies to offer policyholders the opportunity to designate a third party addressee. Insurance companies are required to offer policyholders the option to designate a third party to receive important correspondence related to payment of premiums. Ideally, the insured will designate a third party who will be notified if the policy is at risk of lapse due to non-payment of premium.  When the premium is overdue, the designated person should receive notice from the insurance company about this fact and should take corrective action. Unfortunately, many insureds do not take advantage of this protection.

If a policy does lapse, there are certain provisions in the policy and in the law that may allow for reinstatement.  Almost every policy contains some sort of lapse protection provision. Typically, the provision states that if an insured is suffering from a functional or cognitive impairment that would otherwise qualify them for benefits under their policy then they may be able to have their policy reinstated. Most policies dictate the timeframe in which an insured must seek reinstatement. The time frame varies from policy to policy but generally speaking, most policies offer a six month window in which a claim for reinstatement must be made. 

If you or a loved one has unintentionally lapsed your policy, it is crucial to take immediate action. The law offices of Steven M. Dunn, P.A has experience dealing with lapsed long term care insurance policies and can assist you with reinstatement. Call our offices today and make an appointment to talk about your case. 

 

How Our Attorneys Can Help You with Your Long-Term Care Insurance Policy Reinstatement

If you or a loved one have unintentionally lapsed a policy and are struggling to get it reinstated, the experienced attorneys at the law offices of Steven M. Dunn, P. A. can assist you. Steven M. Dunn, P. A is willing and able to get back your invaluable policy coverage. We have many years of experience dealing with lapsed policy reinstatement cases and will use that experience to fight for you. Long term care insurance lapses are complex and require expert assistance. Reinstatement of your policy is too important to leave to chance. Call our offices today to schedule a consultation.