Options when you can't pay your premiums
Understand All Your Choices
If you want to keep your policy but are having trouble making payments, make sure you consult with a financial adviser and your insurance company or agent about all your choices.
Here are some ideas that may help if your policy seems unaffordable:
- Do you have any cash value in your policy? If so, can you use some of the cash to pay your policy's premiums or to pay other expenses?
- Find out if you have an accelerated death benefit. This pays some of the policy's death benefit to you before you die and provides the remainder to your beneficiaries upon your death.
- Can you convert your policy to a paid-up policy or reduce the death benefit to lower the amount of your premium payments?
- Will your beneficiaries help pay the premiums so they can keep the financial protection you want for them?
- Can you get a loan to pay premiums, using your policy as collateral?
- Do you want to return your policy to the insurance company for the surrender value, which may be a small amount of what the policy would pay if you die?
- Or, do you want to sell your policy through a life settlement contract? You will typically get more than the surrender value but less than the amount the policy would pay when you die.
Help understanding your choices
Call the Oregon Insurance Division consumer advocates: 503-947-7984 or toll-free at 1-888-877-4894. You can also e-mail: cp.ins@state.or.us
