Life happens so what happens when you can no longer afford to pay for your Life Insurance premiums?
Before you cancel the policy, talk to your insurer, they can provide you with options to keep the policy active. For example.. the already paid premium can be utilized to pay premiums for a policy of a lower value.
Non Forfeiture Options Offered by Insurance Companies which are also stated in your Insurance Policy Document include;
1. Automatic Premium Loan. A policy pays for itself (Loans you at an interest). You pay the interest and premiums in arrears.
2. Paid Up Option (Policy is maintained at a lower amount of insurance). You don\’t cancel, at the same time you don\’t continue making contributions but at least you still benefit from your earlier contributions.
3. Reducing Premiums to an amount you are able to contribute.
4. Re-dating a policy (You wont pay arrears, you continue normally from where you left, you can also re-date and reduce the Premium at the same Time).
5. Revival. One pays arrears in bits until policy becomes up to date.
After a policy has lapsed for more than 2 or 3 years, one may be required to go for medical check up at their own expense in order to revive the policy.
6. Cash Surrender. This option can only take place after a policy has acquired a surrender Value-this could be 3 years or 2 years after issuance.
Don’t suffer silently and lose out on a good product, talk to your insurer, agent or broker today.
Gallin Wekesa; Financial Advisor Britam.
0712-870-447
gwwekesa@britam.com