If you decide to stop paying the premiums on your life insurance policy, the
insurance will be cancelled by your life insurance company.
This is known as letting your policy 'lapse', and the length of time between
the last payment and when the policy lapses will vary between companies.
For full details of how long it takes your life insurance policy to lapse - look
at the "Key Feature Document" for your specific policy.
If you accidentally miss a payment, then you will receive a letter from the
life insurance company, pointing this out - your policy will not be lapsed without
your prior knowledge. You will always be given time to correct a missed payment.
A useful optional extra to your policy is "waiver of premium". "Waiver
of premium" means that if you are unable to pay your premiums due to long
term illness or accident, then the life insurance company will cover the premiums
for you. There is a small extra charge for this option.
An easy way to accidentally cancel your life insurance without your knowledge
is to move address - always inform your life insurance company of your new address!
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