What if someone can’t afford life insurance?
What if someone can’t afford life insurance? Thinking about the possibility of not always being able to pay the policy premium on time makes many people rethink the idea of buying life insurance. It is a real concern because the validity of life insurance depends on being up to date with payments. However, if an insured has difficulty paying, there are some alternatives to appeal before losing the insurance contract due to non-payment.
The first of these is the possibility of using the grace period. Most contracts include a period of 30 extra days, after the payment due date, -known as the grace period-, within which the beneficiary can gather enough funds to continue paying without losing their policy.
Another alternative is to use the cash value accumulated by the policy. As is known, permanent life insurance accumulates, in addition to the death benefit, a cash value that can be borrowed in case the beneficiary is in financial trouble, either to pay the premium or for what he needs. This loan, like all others, has an interest. If the policy owner can’t pay it back, the only thing that will happen is that the death benefit will be reduced and your beneficiaries will get a lower payment.
There are many other variants that would ensure that someone does not have to lose their policy due to non-payment. Talk to your insurance agent and they will explain in great detail. What if someone can’t afford life insurance?
At Univista Insurance you can find the cheapest life insurance in Florida.