when will my life insurance be paid up

Posted in Whole Life Insurance over 2 years ago, 1 reply

I have been paying close to $100/month for whole life insurance for almost 22 years. Wouldn't my insurance policy be paid up by now, and I have put in around $20,000 of my own money for a $100,000 policy - I took out some money to pay for son's college and now they send me statements that I owe them money, how can I owe money that is MINE?
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Hello Babs,

Your question can be best answered after having a look at your Insurance Policy documents.
But here are a few information:

PaidUp: Actually means that your policy is lapsed (due to non-payment of the premiums/installments). Which in your case should not be so, as you have said that you are still paying the premiums.

Taking out some money: What arrangement did you have with the insurance company when you took out the money? Depending on your insurance policy, there can be 2 ways when we withdraw a part of our money
1) Partial Withdrawal
2) Loan
In case of partial withdrawal, you need not pay back what you have withdrawn.

In case of Loans, it can be resolved in 2 ways if your policy has not yet 'matured' (policy period ended);
a) paying back the loan with interest
b) surrendering of your policy and taking our your balance after settling the loan.
In case your policy 'matures' (policy period ends) your insurance company will deduct the loan amount+interest and pay your the balance.
This also means that in case of a loan, until you have 'paid back the loan' or 'surrendered your policy' or 'your policy matures' you will be charged an interest for your loan.
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