Have you ever thought about what would happen if you could no longer pay your life insurance premiums? With the economy the way it is at the moment, more and more people are now considering that possibility.
Of course, the best thing to do is to ask your insurance carrier to explain exactly what would happen, especially because each type of insurance has different consequences for not paying. However, here is the general idea for the most common types of coverage:
• Term Life – When you can no longer afford to pay term life premiums, your coverage will lapse.
• Permanent Life – This comes with a few options:
o You can stop paying the premium and receive the available cash savings. You’ll lose coverage, but you will have a little money.
o You can stop paying premiums completely in return for a reduced death benefit and no cash saving.
o Your policy can lapse. Ask if it can be reinstated.
It happens to more people than you think, but many times, insurance carriers will work with you or give you enough options so that you will be fine.
Want to know more about life insurance? Contact us today. We’re Podmaska Insurance, an independent agency in Providence, Rhode Island.
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