It depends does not really sound like much of an answer. It really does depend on the type of plan you have chosen.
Some plans are guaranteed paid up after a number of years for example 20 years, at age 65 or 100 It would be stated in the policy contract.
If the policy is participating (with dividends) then you maybe able to use dividends to reduce or pay premiums . (Dividends are not guaranteed)
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
A whole life insurance referenced as being paid up means that the policy is self-sustaining because of the size of the cash value relative to the face amount and the interest and dividends earned can keep the policy going forever without the need for any more premium payments to keep it going.
The policy uses the cash value to pay the premiums for the policy. If you borrow from the cash value for a "paid up" policy, you can affect its ability to keep the policy going without paying more premiums. In short, you can make a "paid up" policy no longer paid up - you may have to start paying premiums again.
Some policies are specifically designed to stop premium payments after a certain number of years (e.g. a 10 pay, 20 pay, pay to age 65). You're paying more in premium per year, but the overall sum total that you pay over a given time (e.g. compared to paying a lower premium for 35 years) can offer savings in the long run.
I hope the information is helpful - please feel free to contact me if you have any questions. Thanks very much.
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Some plans are guaranteed paid up after a number of years for example 20 years, at age 65 or 100 It would be stated in the policy contract.
If the policy is participating (with dividends) then you maybe able to use dividends to reduce or pay premiums . (Dividends are not guaranteed)
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
The policy uses the cash value to pay the premiums for the policy. If you borrow from the cash value for a "paid up" policy, you can affect its ability to keep the policy going without paying more premiums. In short, you can make a "paid up" policy no longer paid up - you may have to start paying premiums again.
Some policies are specifically designed to stop premium payments after a certain number of years (e.g. a 10 pay, 20 pay, pay to age 65). You're paying more in premium per year, but the overall sum total that you pay over a given time (e.g. compared to paying a lower premium for 35 years) can offer savings in the long run.
I hope the information is helpful - please feel free to contact me if you have any questions. Thanks very much.