Is There a Grace Period in Florida To Pay Your Life Insurance Premiums Late?
Every state has different, though similar, law that applies when someone does not pay their life insurance premium on time. You have to look at the law of the state that applies to your life insurance policy (usually the state in which the policy was delivered). In Florida, there is a 30 day grace period that applies to life insurance policies delivered in the State of Florida. The life insurance grace period law is Florida Statute Section 627.453, and it states:
Grace period.—Every insurance contract shall provide that the insured is entitled to a grace period of not less than 30 days within which payment of any premium after the first may be made. The payment may, at the option of the insurer, be subject to an interest charge not in excess of 8 percent per year for the number of days of grace elapsing before the payment of the premium, during which period of grace the policy shall continue in force. If the policy becomes a claim during the grace period before the overdue premium is paid, or the deferred premiums of the current policy year, if any, are paid, the amount of such premium or premiums with interest not in excess of 8 percent per year thereon may be deducted in any settlement under the policy.
This law basically says that you have 30 days after the deadline to pay your life insurance premium, but the life insurance company may charge you up to 8% interest per year for the number of days you are late. It also says that the policy stays in force during the grace period, and if a claim is made during the grace period (i.e. if the insured dies and one or more survivors make a claim), then any overdue premium and interest on those unpaid premiums may be deducted from the policy benefits that are paid.
Have you been denied life insurance benefits? Call (866) 282-5260 for a free consultation with Life and Accidental Death Insurance Attorney John V. Tucker.