A.M. Best’s Consumer Insurance Center

A New Look at Your Old Life Policy

Premiums too high? Don’t let your coverage lapse, there’re better options.


If you are a senior citizen who is tired of paying premiums on a life insurance policy, you have options.
There are many reasons why policyholders might want to stop paying life insurance premiums. Maybe the premiums have become too great a burden, or the policy doesn’t suit your needs any more. Maybe
the original beneficiary has died, or perhaps you can buy a better policy.

When you stop paying the premiums, your policy can lapse or expire without you or your family receiving any benefit at all. But, there are ways to stop paying premiums on that policy and still end up with some money in your pocket.

Options you might want to consider include:

• Cash in the policy for its cash surrender value. You’ll typically get back 3% to 5% of the policy’s face value.

• Seek an accelerated death benefit from the insurer. If you are ill, some insurers allow you to receive a partial death benefit before you die. Sometimes this is a special feature you must have purchased at the
time you bought the policy, but some companies allow you to add the feature for an additional premium later. Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6