Life Insurance Gainsville Florida FL
Reader’s Question:
If I can’t pay my premium for the whole life insurance, will the life insurance in Gainsville FL lapse immediately?
Bartson
Gainsville, FL
Hello Bartson
If you can’t currently pay the premiums of the whole life insurance, it won’t immediately lapse. Usually, there is what we call “grace period” which usually runs for two months. If the due is April 1 for instance, you have until June 1 to pay the premium before it lapses. This means that if you have no available cash this April 1, you can still pay from that due date to June 1. But you don’t have to wait for that grace period to end before you can pay in Gainsville, FL. If you think even with the grace period you cannot pay the premiums, you can opt to collect the cash value that accumulated over the years. Once you do this, the life insurance will immediately end and you may need to pay taxes for the cash disbursement.
Your other choice is to use the accumulated cash to pay for your due date (that is if the accumulated cash is enough). This is good as borrowing from cash savings. Since you are merely borrowing you need to pay it back to keep the cash value in favorable growth. Otherwise, you may be at risk to reduce the death benefit and lapse of cash value.
Despite these options I gave you, it is still best to consult your life insurance agent in Gainsville, FL. He can evaluate your current condition and provide you the best option. After all, life insurance agents should also be there in times of crisis and not just for sales.
Tags: life insurance, life insurance plan, life insurance policy, whole life insurance