What to do if I miss my life premiums

by Guest » Mon Jan 25, 2010 07:23 am
Guest

I do make payments towards my life insurance every month. I'm scared of missing these payments of late. Is there a way out?

Total Comments: 6

Posted: Tue Jan 26, 2010 12:49 am Post Subject:

Unsure of what you're getting at.

Is there a way out of what? Paying your premiums? It would be great if you could give us a bit more information pertaining to what you're trying to "get out" of.

InsTeacher 8)

Posted: Tue Jan 26, 2010 01:19 am Post Subject:

If you want to make the payments but are simply afraid that you might miss the payments, a direct debit from your bank account might make sense.

If you want to cancel your policy, if there is no cash surrender value, just stop your payments. If there is a cash surrender value, the best way will be based upon whether there is a gain or a loss along with other factors.

If you want to keep your policy, but can't figure out if you can really afford it, we need a lot more information from you.

Hopefully, you aren't a one and done poster. Many people here would be willing to help.

Posted: Tue Jan 26, 2010 04:37 am Post Subject:

As has been stated, if this is a cash value policy, there is the choice between taking the money out or using money to pay premiums.

If you are planning on cancelling and it is a cash value policy, you'd be wise to contact the insurance company. Simply missing a payment will likely trigger a default automatic premium loan from cash values.

Posted: Tue Jan 26, 2010 10:18 am Post Subject:

Don't you have a grace period for your policy?

I have this 30-31 days period as 'grace period' for my premium payments. So, even if I'd fail to pay my premium within the due date there won't be any negative consequences.

Posted: Wed Jan 27, 2010 05:21 am Post Subject:

Your beneficiaries would also be entitled to receive the death benefits if your death occurs within the grace period. This settlement would be done only after your premium dues are settled.

Posted: Wed Jan 27, 2010 05:52 am Post Subject:

Most contracts will give you 90 days till final laps. After the laps period the insurance company will have the right to re-underwrite the coverage, or charge a reinstatment fee.

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