Are You Sure You Have Life Insurance? [AUDIO]

Are you absolutely positive you and your parents have valid life insurance policies? If you had to think about that question for even a second, keep reading.

There is no law that requires a life insurance company to tell that you missed a premium and your policy is about to be canceled, though they typically send out at least one letter. Insurance industry executives, in fact, say the standing policy is to send three notices. However, the top Republican in New Jersey's Assembly wants more notice, and he's working on legislation to achieve that goal.

"I want as much notice to the insured as I get from Golf Digest when they're about to end my subscription," said Assembly GOP Leader Jon Bramnick (R-Westfield). "If we're talking about someone who has been insured for a long period of time, I think they deserve more than one letter saying, 'Your policy has lapsed,' or 'it's going to be canceled.'"

The assemblyman said if an elderly person missed a premium and had a life insurance policy canceled, it might be impossible for that person to get coverage -- and if they can, it is likely they will be paying a lot more than they previously were, because of their advanced age.

"A lot of times an elderly mother or father might be embarrassed to tell their children that they missed a premium payment," Bramnick said. "The adult children then only find out their parent didn't have life insurance after a parent dies."

Insurance industry professionals have decided to take an active role in helping draft a finalized bill.

"The life insurance industry doesn't want any more regulation, but they're willing to meet with me and discuss possible options of better notification," Bramnick said. "This bill would require a phone call, maybe an email, maybe a certified letter. Something more than one letter saying, 'We didn't get your premium.'"