Life Insurance Policy Question Florida FL

Reader’s Question:

What should I do with an old whole life insurance policy? Is this still in force?

Arnold

Jacksonville, FL

If you have an old whole life insurance policy, the first thing that you need to do is contact your life insurance agent and check if the policy is still in force. Old whole life insurance policy should not be thrown away because of the cash value it has. This type of life insurance policy has a cash value which you can use to buy a reduced paid up policy of the same type. Since you have missed a series of payment period, this option allows you to purchase a policy in a reduced amount but the same cash value as when you ceased paying. Because whole life insurance policy has cash value, you can either take a loan against the cash value of the life insurance policy or surrender the life insurance policy to collect the entire cash value. Life insurance companies also allow lapsed life insurance policy to be reinstated within 5 years on the condition that the policy holder shows a proof of insurability and pays the back premium with interest.

Tags: whole life insurance