Make It Easier to Keep Life Insurance
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Like many Americans, I have life insurance policies to support my family if something should happen to me. Every year I pay the premiums to renew these policies, but if I miss the large annual bill by 30 days I will lose the entire policy. Given my age I would then have to open a new policy at a much higher rate.
This need to keep life insurance policies alive is not a unique problem. The majority of American families have life insurance policies. Given the importance, you would think that life insurance companies would make it extremely easy to renew your premiums, with electronic account access, both primary and secondary (backup) payment methods, etc.
But for some reason my provider Principal Life Insurance does not allow its customers to setup AutoPay at all. In fact, after contacting the company there does not seem to be any way to proactively pay your life insurance policy except by waiting for a delinquency notice to arrive, then paying through an online portal which doesn't allow you to setup Autopay.
Meaning someone who doesn't remember the exact annual date of their renewal and misses the notice amidst a busy few weeks would have a life insurance policy lapse after years of on time payments. How is this good for anyone?
Life insurance policies are generally meant to support those with less financial means on their own, so when it’s hard to keep your life insurance alive this negatively impacts more marginalized groups.
Principal: is it possible to fix this or is there some kind of law requiring it to be setup this way?
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