The same ID on the entire network: Some people talk about insurance. This is my 211th original article. It is updated on the 188th day in a row. It takes about 3 minutes to read. Some time ago, a friend asked me that during the epidemic, I was particularly worried about whether m

The same ID across the entire network: Someone is talking about

This is my 211 original articles

Updated daily 188 days

It takes about 3 minutes to read

A friend asked me some time ago that during the epidemic, I was particularly worried if my income would be interrupted. , what should I do if I can’t pay the renewal premium?

He was promoted twice in the past few years, and his income is getting higher and higher. However, when his income was not very high, he developed the habit of saving money through savings insurance.

He counted that he had nearly ten savings insurance policies (excluding critical illness medical insurance policies).

Recently, there have been news of layoffs in many major factories, which may also be due to the continued rebound of the epidemic, which has made him somewhat anxious. I am worried about what to do with these insurance policies (most of which are still in the payment period) if I encounter occupational risks in the future and my income is interrupted.

Today I will share with you from the perspective of a practitioner, what should you do if you encounter difficulties in paying premiums for a policy you purchased before due to interruption of your income or other reasons?

01

Use the grace period to delay payment

First of all, all long-term premium policies have a 60-day grace period, starting from the second day of the premium due date.

The protection will continue to be valid during the grace period. If the premium is successfully paid before the end of the grace period, it will have no impact on the effectiveness of the policy.

So if you really have difficulty paying your premiums in the near future, you can take advantage of the 60-day grace period.

In addition, if it is a large policy, you can make full use of the grace period policy function without loss, and you can maximize the use of the current premium: but it is best not to pay the premium until the last few days of the grace period to avoid deductions. Unnecessary risks such as failure.

02

enters a two-year suspension period after the grace period

html After the 360-day grace period, if the premium has not been paid, the contract will enter the suspension period at the end of the grace period.

The insurance company will not bear insurance liability for risk accidents that occur during the suspension period.

Within two years of the policy suspension period, if you want to pay the premium, you need to contact the insurance company to apply for reinstatement and pay the corresponding interest. If it is an insurance that involves health notification (such as critical illness insurance, etc.), you need to make a new health notification. If the insured's physical condition occurs during this period, it may also cause the reinstatement to fail, leading to the termination of the contract.

If the two-year suspension period is not reinstated, the contract will be automatically terminated. The insurance company will refund the current cash value of the policy to the policyholder.

03

Automatically advance premiums

Some insurance products can choose to automatically advance premiums, that is, after the 60-day grace period, the policy's cash value at the time will be used to pay the premium automatically. However, if the policy holder does not want to renew or keep it, but If you checked the option to automatically pay the premium when taking out the insurance, it is possible that when you finally surrender the policy, there will be no cash value to refund (all the premiums will be paid in advance).

04

Policy loans

Policies with cash value can apply for policy loans, especially savings insurance, such as annuities, extended life, and life-long critical illness insurance policies, which basically have very considerable cash value.

Policyholders can apply to the insurance company for 80% of the cash value to use for policy loans. Some people may ask, why do I have to pay interest on a loan from the insurance company when I pay the premium for my own policy?

The reason is that policy loans will not affect the validity of the insurance contract. That is, although the policyholder obtains cash from the insurance company through policy loans, the protection is still effective.

Since the insurance company continues to provide us with the protection of this policy, it should be natural to pay interest on the policy loan obtained from the insurance company.

Moreover, the interest rate of policy loans is based on LPR, and generally the floating ratio is not large. It may be lower than the interest rate of a loan directly from a bank, and there is no need for mortgage or credit check. After maturity (the general period is 180 days), you can just Interest payments continue to use the loan principal. It is a very flexible method of turnover when funds are needed.

There was once a customer who deposited money into an extended life insurance policy. However, after the epidemic began two years ago, he encountered turnover problems in his business. After consulting with his broker, he used a policy loan to obtain a sum of cash and revitalized the business in a timely manner. .

He said that if he had not purchased this additional life insurance policy at that time, he might not have known how to use the money. Then when he needed money again later, he would not have known where to find a way. Therefore, he was very grateful to him for the time he spent. Purchased savings insurance.

05

Reduce the basic insurance amount

Reducing the basic insurance amount is not supported by all products. Apply to reduce the basic insurance amount. After the reduction, the premium paid will be reduced, which will naturally reduce the payment pressure.

At the same time, when applying to reduce the basic insurance amount, the insurance company will also refund the cash value corresponding to the reduction in the basic insurance amount to the policyholder.

06

Pay the reduced amount

If the policyholder is not sure how long he or she will be unable to pay premiums, and is worried that even after reducing the basic insured amount, he still has to pay premiums, in case he encounters any extreme problems again, the insured amount may be reduced. The premiums that should be paid after that are still not paid.

At this time, the policyholder can directly choose to pay off the amount with a reduced amount.

That is, the insurance company uses the cash value of the policy at that time to pay the insurance premium in one go, and at the same time, based on the total premium after the reduction is paid, the basic insurance amount is reduced accordingly.

After the reduced amount is paid off, there is no need to pay premiums in the future. Although the basic insured amount has been reduced, at least the protection is still maintained.

This is also the best compromise that can be made based on the situation at the time, and basically will not bring too much extra pressure to the policy holder.

Which method do you think is more useful to you? Welcome to interact with Dayong via private message.

The above is what I shared with you today about not being able to pay the premium after taking out insurance. If the article is useful to you, you can follow me.

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