The insured purchased a life insurance policy with the set monthly premium payments for the first 10 years. In the 11th year, the premium increased significantly. The insured diligently paid all premiums that were due for 10 years. In the 11th year, when the increased premium was due, the insured was gravely ill and did not remember about the payment increase. The insurer did not send any notices to him about the increase and the insured’s online life insurance account showed no changes in the premium.

However, after the insured’s death, the insurer denied the claim stating that the policy had lapsed for nonpayment of the increased amount. When our life insurance lawyers reviewed the records, we discovered that a premium payment was misapplied and the policy should not have lapsed. The total amount of the claim was recovered on appeal outside of court.