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Life insurance
Does anyone know what happens if you and your spouse have been paying for life insurance for 7 years then stopped paying the last 3 years and one of you suddenly dies? I understand it means the insurance lapsed the moment you stopped paying but is there any chance you may benefit for the 7 years you paid? Any information or experience shared will be appreciated. Thanks
Sorry if you are in this situation, and without knowing the terms and conditions of your contract, no one here can really answer, but the likelihood is that the premiums you paid have no rebate value, and as you stopped paying, the contract has lapsed so you will get no payment on death.
If the contract was a savings and insurance product (which is not uncommon), the premiums may have a rebate value, but after 7 years, it is likely to be significantly less than was paid in, perhaps even less than half.
Life assurance products are designed to be long term contracts, typically 15, 20 or 25 year products. That means that generally the first few years are lost in charges and set up fees. It would be a very unusual contract that has any value at all after 7 years.
The only way you can really find out is to read the terms and conditions, or to talk to the insurance provider.
I agree with Anon above that the only way to be absolutely sure is to talk to the insurance provider.
However I would be very surprised if you cannot get something back though, after only 7 years, it will not be very much.
If your question is actually 'what if?' because one of you is seriously ill rather than has actually died, then check whether you can pay the missing premiums.
