What a Lapse Letter Indicates
AIG sends a lapse letter when a premium has not been paid on time or a required policy document is missing. The notice states the policy is at risk of termination and outlines the deadline for corrective action.
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Common Triggers for a Lapse
• Late or missed premium payment• Failure to provide updated beneficiary or medical information• Policyholder's request to change coverage limits without proper adjustment• Administrative errors in the AIG system
Key Details in the Letter
AIG's letter typically includes the policy number, the amount due, the payment deadline, and a link or contact information for payment or appeal. It also warns of the coverage loss and potential impact on beneficiaries.
Steps to Prevent a Lapse
- Check payment status monthly via the AIG online portal or mobile app.
- Set up auto‑pay or calendar reminders for premium due dates.
- Verify beneficiary and contact information after major life events.
How to Respond if You Receive a Letter
1. Verify the letter's authenticity by contacting AIG customer service directly using the phone number on the official website, not the one in the letter.2. If the lapse is due to a missed payment, submit the payment immediately through the secure portal or by mail. Include the policy number and payment reference.3. If the letter references missing documents, provide the requested information promptly and keep copies of all correspondence.4. If you believe the letter is in error, request a review and provide supporting evidence (e.g., proof of payment).
What Happens After Corrective Action
Upon receipt of payment or required documents, AIG will reinstate the policy and update the online account. The letter will be archived, and future notifications will reflect the policy's active status. If the deadline passes, the policy will terminate, and AIG will send a final cancellation notice.
Long‑Term Protection Tips
• Keep a paper or digital copy of all policy documents and correspondence.• Review policy terms annually to confirm coverage needs and premium amounts.• Use a financial planner or insurance advisor to set up a payment plan that aligns with cash flow.