Keeping Your Coverage
Life can get in the way of even the best-laid plans. Changes in finances, careers, or other factors may have you considering a surrender of your coverage with United Home Life/United Farm Family Life Insurance Companies. Before you make a final decision, here are some reasons why surrendering your coverage may not be in your best interest:
- Any future insurance purchases will likely cost more, simply because you’ll be older at the time of purchase, and could be significantly more expensive if you’ve had any adverse health changes.
- Currently, your policy may be building up cash value. If you cash in your policy, you’ll receive the surrender value, but a future life insurance purchase will start the cash value build-up process at zero.
- After your policy lapses, you may be able to apply for a reinstatement but you’ll need to meet certain requirements that may include providing evidence you’re still insurable, such as a medical exam, bodily fluids testing, a statement from your doctor, or other requirements. You will also need to pay all past due premiums, including interest. Any outstanding policy loans present at the time of lapse will be reinstated with interest due to date of reinstatement.
- When you surrender your policy, the coverage is gone. There will be no benefit to be paid to your beneficiary.
Your policy with United Home Life/United Farm Family Life may provide you with options so that you can maintain at least some of the coverage you purchased:
- Reduce the face amount to lower the premiums which may make it more affordable.
- Take a loan from your policy’s cash value, if any, to make a premium payment or two.
- Your policy may have an Extended Term Insurance option or a Reduced Paid-Up Insurance option that will provide coverage with no further premiums due. The policy’s benefit may be lower, but at least some coverage will remain in place for your loved ones.
Talk to your agent today about your policy provisions and other options to ensure that the ones you care about most continue to have the protection that life insurance provides.