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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.
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Disability Insurance: Maintaining Your Individual Policy


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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.

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