Cash surrender

[george hinkel]

can a life insurance pay my premiums out of my cash surrender without asking me i have paid my premiums on time always

 

[fed up]

Yes. What type of Life policy? Whole Life, Universal Life?

 

[george hinkel]

it says adjustable life

 

[adjusterjack]

can a life insurance pay my premiums out of my cash surrender without asking me i have paid my premiums on time always

They CAN do it if they ARE doing it.

So, tell us, ARE they doing it?

If they ARE doing it, there's likely something in the policy that says they CAN, and WILL, do it. Perhaps you should read the policy.

 

[Tahoe Ray]

it says adjustable life

Northwestern Mutual?

 

[Norwayguy]

Its typically one of your nonforfieture options.

 

[Tahoe Ray]

Its typically one of your nonforfieture options.

But he/she is paying the premiums so I'm guessing it is run w/ a level premium but the premium is actually fluctuating so they're using the cash to offset.

Just a guess.

 

[scagnt83]

My guess is just a normal crashing UL. The original premium was not enough to sustain the policy after interest rate decreases. So they take expenses out of the CV when the premium is not enough to cover it.

OP, yes. It is to ensure your policy does not lapse. You most likely need to pay a higher premium to avoid this from happening in the future. The policy will lapse eventually because of this.

Talk to customer service and ask how much you need to pay each month to avoid this from happening until you are age 100. If the amount is not budgetable, then ask about reducing the Death Benefit to an amount with a premium you can afford.

 

[george hinkel]

Yes. What type of Life policy? Whole Life, Universal Life?

My guess is just a normal crashing UL. The original premium was not enough to sustain the policy after interest rate decreases. So they take expenses out of the CV when the premium is not enough to cover it.

OP, yes. It is to ensure your policy does not lapse. You most likely need to pay a higher premium to avoid this from happening in the future. The policy will lapse eventually because of this.

Talk to customer service and ask how much you need to pay each month to avoid this from happening until you are age 100. If the amount is not budgetable, then ask about reducing the Death Benefit to an amount with a premium you can afford.

 

[george hinkel]

my gripe is that i didnt know they were taking it out which is my fault but i didnt have the option of cashing the policy in and now my cash value is gone