What Happens If You Stop Paying Life Insurance Premiums?
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Table of Contents
What Happens If You Stop Paying Life Insurance Premiums?
How to make sure you pay your policy premiums on time?
Final Thoughts
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FAQs
The cash value is the accumulated amount of money that the policyholder pays in excess of the insurance costs, which is invested by the insurance company to generate returns. The cash value can be received as a refund on the premiums paid or can be used to buy a reduced amount of coverage.
However, surrendering the policy may result in the loss of the remaining coverage and benefits provided by the policy, and the policyholder may not be able to reinstate the policy.
If the policyholder wishes to reinstate the policy, they may be required to pay the due premiums and any interest or penalties that may apply. The reinstatement of the policy may be subject to the insurance company's approval and may involve a medical examination or a declaration of good health.
for Salaried Individuals¹
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Disclaimer
Tax benefits are subject to changes in tax laws. Kindly consult your financial advisor for more details.
ABSLI Salaried Term Plan (UIN:109N141V01) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
1LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Premium paying term: 10 years, Annual Premium: ₹ 5900/- ( which is ₹ 491.66/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
ADV/10/23-24/2468
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