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Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Summary

The key to keeping an individual disability income policy in force is keeping the premiums current. If the policy ever lapses for non-payment, the insurance company may be willing to reinstate the coverage. However, the company has the right to ask for proof of good health - and almost always will.

If you have a medical condition, the insurance company will probably not reinstate the policy and your coverage will be lost.

Most states require insurance companies to allow a 31 day grace period after the premium due date during which payment can be made without the coverage lapsing. Prudence suggests that you don't rely on a grace period if you can avoid it. Too much can go wrong with the mail and with insurance companies.

To assure timely payment of premiums:

  • Keep track of when premiums are due.
  • Consider arranging for automatic payment of premiums. You can set it up with a bank to make the payments automatically. Alternatively, the insurance company may be able to automatically withdraw the funds.
  • Check during the grace period to make sure each payment was made. This may seem like overkill if payment is automatic, but things do happen.
  • If you can, stay a payment ahead. If you run into a financial crunch, you'll be a step ahead.

Keep Track Of When Premiums Are Due

Don’t rely on the insurance company to remind you of a renewal date or premium due date. It is not unheard of for an insurer to “forget” to send a bill if continuing a policy could result in an expensive claim.

It is suggested that at the beginning of each year, you make a notation in your calendar each time a premium is due. You can set alert on your computer to automatically remind you.

Automatic Payment Of Premiums

Most banks these days have online banking, often without a charge. You can arrange payment of the premium to occur automatically under this arrangement.

If you don’t want to use this method, find out if the insurance company has a system to automatically deduct premiums from your bank account. Be sure to notify the insurance company well in advance if you change checking accounts or make changes in your banking that could stop the insurance company from getting the premium payment.

If you use either of these premium paying methods, make sure that the money is in the bank when needed. An easy way to do this is to make a note in your calendar or set an alert on your computer to remind you when the money is due.

Check to be sure each payment is actually made. While this may seem like overkill, a disability income policy can be too important to you to lose it because of a mistake.

Stay A Payment Ahead In Your Premiums

If you can financially, stay one premium ahead so that you can confirm your payment was received and the check cleared well before the lapse date.

Staying ahead will not only prevent a lapse in coverage, it will also help you through a financial crunch.

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