No one wants to default on their life insurance premiums. But at times when you cannot avoid this situation, what is the next step to take? Here are tips regarding what you should do if you cannot pay for your life insurance premiums.
Reduce your life insurance’s face amount
If you can’t meet up with the payment of your life insurance premiums, you can decide to reduce the value of your death benefit. Once you select this option, your life insurance company may stop you from paying premiums altogether. Also, reducing the value of your policy allows you to drop some costly policy riders.
Switch to a cheaper policy
If you are finding it difficult to pay premiums on your current life insurance plan, consider moving to an inexpensive policy. For instance, you can always stop your permanent life insurance and use the proceeds to buy a term life insurance policy.
Drop your life insurance policy
You could also drop your life insurance plan if you cannot meet up with premium payments. Besides, bear in mind that any money you get as a result of this action will be subjected to taxes.
Contact an expert
If all other options fail, you could either contact us or your personal insurance agent. Feel free to share your situation with these insurance professionals. It is highly likely that you will be given options that will be favorable to your budget.