Non-Forfeiture Benefits of Life Insurance

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Non-forfeiture benefits of life insurance may come into play if you decide that you no longer want to pay your premiums. Learn about non-forfeiture benefits of life insurance with help from a financial industry expert in this free video clip.

Part of the Video Series: Life Insurance Lessons
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Video Transcript

Hi, my name is Phil Cioppa and I'm the host of the nationally syndicated radio program, "The Phil Cioppa Show". Today, we're going to talk about non-forfeiture benefits of cash insurance. What that means is let's say you have decided you no longer want to pay your premiums. You've paid in for a number of years, you're tired of paying them, you just want to stop but you don't want to lose the insurance that you've already attained. Well there is a few options. The first is that you can go into what's called an extended term life policy. You will probably have paid in enough premium so that you've be able to have a term life policy which will still pay a death benefit at the end of your life and that term policy will run most likely depending how long you've held your policy for a good number of years or you can do a paid up life insurance policy. In other words, maintain the same kind of cash policy whether it be whole life, universal life or variable universal life and yet, stop where you're paying and say okay I was paying on $100,000 what I've put into it, what does it buy me now and it might be 30 or 40,000 but you can end paying premiums and what you have is what you have and you don't have to pay any more premium into it. Finally, you can take the cash out of those policies, whatever cash policy you have and do a tax free transfer into either immediate annuity or into a deferred annuity. In other words that cash can gain interest and pay you out on a regular basis or you can put that cash into a deferred policy, let it build up over the next five, seven, ten, twelve years, whatever the insurance company with whom you're dealing offers and then begin to take payments from there. So if you are tired of paying for your policy, you've been paying for a number of years, those are your options. Thank you.

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