What happens if I fail to make
the required premium payments?
If you miss a premium payment, you typically have a
30- or 31- day grace period during which you can pay the premium
with no interest charged. After that, the company can - with your
authorization - draw from a permanent policy's cash value to keep
that policy in force. In some flexible premium policies, premiums
may be reduced or skipped as long as sufficient cash values remain
in the policy. However, this will result in lower cash values.
What happens if I become disabled
and can't pay the premiums on my policy?
Provisions or "riders" that provide additional
benefits can be added to a policy. One such rider is a "waiver
of premium for disability." With this rider, if you become
totally disabled for a specified period of time, you do not have
to pay premiums for the duration of the disability.
Are other riders available?
Another rider, called an "accidental death benefit,"
provides for an additional benefit in case of death as a result
of an accident.
A relatively new rider offered by some companies provides "accelerated
benefits," also known as "living benefits." This
rider allows you, under certain circumstances, to receive the
proceeds of your life insurance policy before you die. Such circumstances
include terminal or catastrophic illness, the need for long-term
care of confinement to a nursing home. Ask your agent for information
about these and other policy riders.