Does a payment plan mean your policy is paid up?
An illustration may show payments stopping while the contract still requires premiums. Confirm which obligations are guaranteed and which depend on assumptions.
What does premium offset mean?
Policy dividends and, where applicable, value from additional insurance may help pay premiums. Offset does not necessarily end your payment obligation. Lower dividends may require you to pay out of pocket again.
What does reduced paid-up mean?
Some policies allow existing coverage to be exchanged for a smaller amount of insurance without future base premiums. Availability and terms depend on the policy and insurer. Confirm remaining protection, benefits that end and whether the change can be reversed.
How can you compare the options fairly?
Compare continuing payments, premium offset and any reduced paid-up option side by side. Separate guarantees from estimates. An illustration is not a promise, and a dividend scale is not your policy’s investment return.
Are cash value and the death benefit the same money?
Cash value may be available during the policy’s life under its terms; the death benefit is payable on death under the contract. Do not assume they are added together. Confirm how borrowing, withdrawals or changes affect each.
What if a company owns the policy or it supports a loan?
Review the decision with the relevant accountant and lender. Changing coverage does not repay a bank loan or stop interest. Understand continuing obligations and tax consequences.
What should you confirm before making a change?
Obtain the insurer’s current written figures. Understand future payments, remaining protection, cash values and benefits that would end. Identify estimates and anything still awaiting confirmation.
General education only. Your policy, insurer’s written figures and circumstances govern the choices available.