Buying a guaranteed life insurance policy involves a long-term commitment – a commitment that involves paying the annual premiums every year, typically for a long period of time. But what happens when “life happens” and the planned outlay for that annual premium becomes difficult or impossible?
We know that as long as the premiums are paid as illustrated and no loans are taken on the policy, the death benefit is guaranteed to remain in force for the period illustrated. But what happens when that premium payment schedule temporarily can NOT be met?
The answer is, IT DEPENDS. With some carriers, a premium that is skipped (or even just late) can negate the death benefit guarantee. With other carriers, skipping a premium just shortens the guarantee period.