Welcome to Quotacy's Q&A Friday where we answer your questions about life insurance. Quotacy is an online life insurance agency where you can get life insurance on your terms.
My name is Jeanna and my name is Natasha.
Today's question is: Can I take out my life insurance?
The answer is no. And this is because life insurance does not accumulate a cash value as some permanent life insurance does so there is nothing to pay out.
So if you survive your insurance, the coverage simply ceases.
Your coverage ends and you can celebrate that you're still alive.
But if you want a life insurance policy and do not mind paying extra for a guarantee then you may want to consider repaying a premium life insurance policy. [1
Sure! Returning premium life insurance is pretty much what it sounds like. It is a futures policy, but if you survive it, you will get your premiums back.
So it is a guarantee because either your beneficiaries will receive the death benefit or you will get back all the money you have paid in.
Exactly. However, there is a catch. Reimbursement of premium life insurance is more expensive than a regular life insurance.
How much more expensive?
Well, for example, a 20-year life insurance policy of 500,000 USD for a healthy 30-year-old will give you about 30 USD per month. The same policy as a life insurance policy with a refund of premiums will cost you about $ 100 a month.
That's a big difference.
That's it, but for some people it's worth it. If you are financially stable, you have monthly contributions to pension plans, and you do not mind paying extra for that guarantee, then repaying premium life insurance is an excellent option. life insurance offers a cash value?
They do, but this cash value accumulates slowly and is not added to the death benefit or your refunded premiums.
So what is the purpose of the cash value?  Well, you can take out a loan on this cash value if you want. But like all other loans, there is interest and you have to pay it back. So if you were to survive your insurance, when the insurance company returns your premiums to you, they will deduct that loan amount and interest. And if you die during the semester, the insurance company will pay your beneficiaries the death benefit, but they will deduct that loan amount and interest.
So what happens if you decide you still want coverage after your period ends?
The two most common ways to continue coverage are to either buy a new life insurance policy or convert your life insurance policy to a permanent life insurance policy as long as the conversion option has not expired yet. Policy conversion is a bit complicated. Let's talk about it next week.
I & # 39; m game.
If you have any questions about life insurance leave us a comment. Otherwise, see you next week when we talk about thermal conversions. Goodbye!
Image credit to: Ashim D’Silva