In Jilin, Shanghai, Beijing, and Shenzhen, in recent months, the epidemic has continued to hit the hot searches.
Hot topics: The number of new cases of the epidemic in various regions, the suspension of mortgage payments, food supply guarantees...
People are isolated at home, and while they have no income, there is no shortage of places to spend money.
And the most common thing that major Internet companies will do in 2022 is to start layoff plans one after another. Among them, there are innovative business abolition of Tencent , Alibaba , Baidu , as well as cases of whole-system optimization such as Meituan , Didi , Byte, Jingdong and other cases.
Unemployment and the epidemic are undoubtedly a huge blow to most ordinary people. All aspects of life will be affected. They can’t afford mortgages and car loans, they haven’t found a job, they can’t afford insurance premiums...
What if there is no source of income? , what should I do if I can’t afford the premium?
01. Make good use of the grace period
On the payment day, if we have not paid yet, then the grace period will begin from the next day. During the grace period, the insurance contract is still valid, and claims will be settled if risks occur.
Therefore, you can defer payment, but you must pay the premium within the grace period.
The grace period is generally 60 days. If the fee is not paid by the 60th day, the contract will have to be terminated, risks will occur, and no claims will be settled.
At this time, another function is needed:
02, automatic advance payment of premiums
General long-term insurance has a cash value. When applying for insurance, select the "automatic advance payment of premiums" function. If you fail to renew in time after the grace period, As long as the cash value of the policy at that time is greater than the premium payable, the policy's cash value can be used to automatically pay the premium.
03. Pay off the policy with a reduced amount
When there is no way to continue paying the premium, the existing cash value of the policy can be paid as a one-time premium, and the remaining premium does not need to be paid. The insured amount will be reduced accordingly, and the policy will continue to be valid.
The analogy of using a loan to buy a house is that we bought a 90-square-meter house with a loan. After a few years, we couldn't afford the mortgage due to liquidity problems, so the real estate developer replaced it with a 50-square-meter house. No need to pay it. We can also understand it as replacing a "big insurance" with a "small insurance".
But not all insurance products can use the reduced payment function. There are two prerequisites for it to take effect:
- First, the product must have a cash value;
- Second, it must be an installment insurance product, and only the premiums must be paid in installments. Only then does the issue of remaining unpaid premiums need to be resolved.
04. Using insurance reduction
is to partially surrender the insurance, which can reduce the insurance amount and reduce the premium paid, which can alleviate the payment pressure and continue to have protection.
05, policy loan
Long-term policies have cash value, and policy loans can be made. The maximum loan value is 80% of the cash value, which can be used for capital turnover. The premium must be paid first.
However, it should be noted that policy loans need to repay the principal and interest within 180 days.
06, policy reinstatement
If none of the above methods can solve the problem, the validity of the policy will be temporarily suspended.
If an insured accident occurs at this time, the insurance company will not be liable for compensation. But within two years, you can still apply to the insurance company for reinstatement of the policy.
Policy reinstatement can not only maintain the cash value of the original policy, but also continue to pay premiums according to the original age of the insured. Therefore, after everyone has the ability to renew the policy, it is recommended that the policy be reinstated within two years to restore coverage.
However, resumption of effect has a cost, which will involve recalculating the waiting period and requiring another health notification. In addition, you need to pay a certain late payment fee when applying for reinstatement.
Kangkang recommends that you try not to let the policy lapse to avoid unnecessary trouble.
This epidemic has really hit many people in the head. We should be prepared for a rainy day, persist in saving, invest scientifically, and be prepared in advance so that we can respond well when risks occur.
