What if I can't cover the costs of my existing life insurance policy? |
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Answer:
It depends on the type of life insurance policy you have, If you have term life insurance and cannot pay your bills, the policy will lapse for non-payment of premiums. When your policy lapses, you may have a grace period during which time you can make a payment. In addition, if your life insurance policy has lapsed, your insurance company might be willing to reinstate it if you are able to make up all past due payments. This option is at the discretion of the insurer. Permanent life insurance policies often have features that allow you to pay your premiums out of accrued cash value. If your policy allows this, keep in mind that paying premiums this way could reduce your cash value significantly over time as well as the death benefit. When you’ve exhausted this option, the policy could lapse. Some life insurance policies have flexible premiums allowing you to skip premiums periodically or pay more or less than is due. These policies can also reduce your cash value or benefits so use care when exercising this option. Trackback(0)
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