Inability to maintain the original payment three coup teach you surrender to reduce losses Insuranc

Category: Insurance tips Release Date: 2006-08-01

To reduce the amount of compensation paid by the amount of the temporary failure

Ms. Zhu and her husband a few years ago for their own children to buy a large number of life insurance, annual expenditure of the total premium is 20,000 yuan. Due to the recent changes in household economic conditions, Ms Chu difficult to afford such a premium expenses. Life insurance process, the insured unable to maintain the original payment, it should be done? Currently, there are three ways you can surrender the loss to be reduced.

Approach one: To reduce the insured amount

Ms Chu can reduce the amount of ways to reduce insurance premiums each year spending, which in fact is a partial surrender. For example, Ms. Zhu from the annual premium paid 20,000 yuan to reduce to 1 million, then the corresponding amount of insurance also reduced. Can be applied to retain about 50% of the insured amount and the remaining 50% of the sum insured by insurance companies to return the corresponding cash value.

Relative to the full surrender to reduce the sum insured subject to the direct economic losses small, the policy can remain in force.

Option two: reduction in the amount of paid

Consumers do not want to continue to pay premiums, but also want the policy is still valid, you can use "reduced the amount of paid in full" approach. This refers to the cash value of insurance contracts with the circumstances, the cash value of insurance and deduct the unpaid interest on borrowings and interest to the balance, as a lump sum of all premiums to the same contractual conditions reduce the amount of insurance maintain the policy remain in force.

In other words, apply for "less the amount paid" In the future, customers can no longer pay, the policy will continue to be valid, but the insurance amount may be significantly reduced.

Option three: temporary failure

If the customer is just a temporary cash-strapped state of the economy will improve soon, then without going through the above-mentioned procedures. Usually if the insured person during the annual payment period is over within two months of unpaid premiums in the current period, then the policy will be a temporary failure. But as long as two years, the insured unpaid premiums and interest will be added on, you can apply for Reinstatement to continue to maintain this policy. This approach has a drawback in that the effective time of application for re-insurance company to go through re-examine, if the insured physical condition has changed, then the insurance will be subject to some constraints.