What happens if my final expense policy lapses in Nevada?

A life insurance policy lapses when premiums are not paid within the grace period specified in the contract—typically 30 to 31 days after the premium due date. When a final expense policy lapses, coverage ends and the death benefit is no longer payable.

Most whole life policies include non-forfeiture options that prevent total loss of value even after a lapse. Extended term insurance uses the accumulated cash value to purchase term coverage for a defined period. Reduced paid-up insurance uses the cash value to purchase a smaller permanent death benefit that requires no further premiums. The specific options and values depend on the policy contract and the amount of cash value accumulated.

Many carriers also allow reinstatement of a lapsed policy, typically within two to five years of the lapse date. Reinstatement usually requires paying all past-due premiums plus interest and satisfying simplified health questions (proof of insurability). The advantage of reinstating an old policy is regaining the original issue age rating—which is typically more favorable than applying for a new policy.

If reinstatement is not possible or practical, you would need to apply for a new policy at your current age and health status, which generally means higher premiums.

To avoid lapse, consider setting up automatic bank drafts for premium payment. Agents in our network can also discuss paid-up additions or other riders that may help your policy remain in force during financial hardship.