3/9/2024 0 Comments Primerica life online payment![]() ![]() Interest will accrue on the amount you borrow. You also might be able to borrow against the cash value and use that money to pay your premium (or other expenses you might have). Withdrawals also reduce the death benefit. If the amount you withdraw exceeds the amount you’ve paid toward the cash value portion of your policy, you’ll pay taxes on the difference. Whitman recommends ordering an in-force policy illustration for your insurer to see what impact using the cash value to cover premiums will have on the overall value of your policy. If you’ve had the policy for several years, you might have built up enough cash value to cover some payments. Policyholders can use a permanent life insurance policy’s cash value in multiple ways, including using the cash value to pay premiums by making a withdrawal from the cash value. Prudential says that dividends are credited on your policy anniversary, so only that bill is reduced. For example, MassMutual dividends can be used to reduce the following year’s premiums. The financial benefit might not be immediate. You can use dividends to pay your premiums. Whole life insurance policies pay out dividends to policyholders in years when the insurance company has performed well. So this option won’t be ideal if you need immediate financial relief. There’s typically a waiting period, though, before the waiver rider kicks in, during which time you’ll have to continue making payments. However, some riders waive premiums for unemployment, Whitman says. Typically, the waiver kicks in if you’re unable to pay the premium because of a disability. You might be able to skip payments but continue your insurance benefits if you bought a waiver of premium rider. If you have a cash value life insurance policy, ask for an in-force policy illustration to see what the impact of not paying will have on your policy and how much you’ll need to pay going forward to make up the difference to keep the policy in force. He recommends clients who are facing temporary hardship take advantage of this two-month break on payments.Ĭall your insurer to find out how long your policy will remain in force if you don’t make a payment. Typically, if you go another 30 days without paying, the policy will be in “lapse pending” status, says Michael Whitman, a certified financial planner and managing partner for Millennium Planning Group. Most life insurance companies give policyholders a 30-day grace period to pay the premium from when it is due. Take Advantage of the Payment Grace Period ![]()
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