Guide · Payments · 2 min read
A payment bounced. What now?
Returned payments happen more often than people think. What matters most is how soon you deal with it.
What usually happens next
Most life policies have a grace period after a missed payment. It's often about a month, but the exact length depends on your contract and your state. Coverage usually stays in place during the grace period. If the payment still isn't made when it ends, the policy may lapse.
Your insurer will usually mail a notice. Mail can be slow, so it's better to call them than to wait for it.
Check the cause first
Look at why the payment came back. Common reasons are low funds, a closed account, a new card number, or a bank error. If your bank details changed, the insurer needs the new ones before the next draft. Ask your bank if the insurer tried more than once, so you know what was actually charged.
Paying what's due
Many insurers take a one-time payment by phone or through their website. Some add a returned-payment fee. Write down the date, the amount, the name of the person you spoke with, and any confirmation number.
What to ask your insurer
- How long is my grace period, and on what date does it end?
- What exact amount do I need to pay, including any fees?
- Can I make a one-time payment today, and how?
- How do I change the payment method on file?
- Can you confirm in writing that my policy is still in force?
This guide gives general information and is not advice on your own policy. Your policy contract and the insurer make the final call.