What To Do With Your Whole Life Insurance Plan During Retirement?

Couple reading newspaper about life insuranceEvery person dreams of a peaceful, relaxing retirement. We want to live then without having to worry about financial problems. Unfortunately, for many of us, this is a utopia and we must realize that without proper funds, these dreams may never become a reality.

Another problem is securing the welfare of the family, in case that one of the income earners dies. Having life insurance during retirement has become a must. So, there is always a dilemma about what to do with your whole life insurance plan during retirement. Should you keep it or should you renounce it? Here are a few options:

1)      Waiver the premiums. This is only a temporary solution, but you can ask the insurer to wait you for a month or two before you can find enough money to pay the premiums.  If you do not want to cancel the policy and you think you can obtain the money, this option is preferable.

2)      Return of premiums. If you feel that you can no longer continue with payments, you can ask the insurer to return your paid premiums. You will get your money back, but some administrative costs will be subtracted.

3)      Borrow against policy. This feature becomes available after 5 or 10 years of payment. You can access a part of your savings and use the money as you want. However, there are some limits and if you borrow too much, it will affect the face value and cash value.

4)      Accelerated death benefits. If you get sick and you urgently need treatment money, you must call the insurer and ask for financial support. People who usually call for accelerated death benefits need money for urgent surgeries like organ transplants. Again, withdrawing too much money will affect the death benefit.

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