How do I know if my permanent policy might lapse?

Question

I need clarity on what happens if a life insurance premium is missed or a permanent policy no longer has enough value to support itself. At the moment, the policy has been in force for years. Right now, the coverage could affect roughly $320,000 or more for my family, so I am paying close attention to exclusions, beneficiary rules, and what could cause the benefit to be reduced.

Soradin · Accepted Answer

Review current projections, guaranteed values, loan balances, charges, and required future premiums. For this insurance planning decision, a life insurance policy can lapse when required premiums are not paid or when cash value is insufficient to support charges. The policy contract and current values should drive the coverage analysis, instead of treating a sales presentation as the controlling document. When evaluating the policy, request a current in force illustration from the insurer so the effect on cash value, loans, premiums, lapse risk, and death benefit can be reviewed using the actual contract.

How do I know if my permanent policy might lapse?

Soradin

Need help with your situation?