According to the Life Insurance Settlement Association, over 710,000 insurance policies are lapsed or surrendered each year. Consequently, nearly seven billion dollars in combined face value is lapsed annually by seniors in the United States.
After a life insurance policy has lapsed, insurance companies are not under any legal obligation to disperse funds to beneficiaries after the policyholder has passed away. The reinstatement process requires the policyholder to be in good health with proof of insurability, and all missed insurance premiums must be paid to the insurance company.
The viatical settlement process allows ovarian cancer patients to explore their financial options before lapsing a life insurance policy. Even if you decide to keep your policy, understanding its value can provide financial peace of mind.