Sengbohyeop "Use Payment Deferral or Reduced Full Payment Before Mid-Term Insurance Cancellation"

It has been advised that using contract maintenance systems such as premium payment deferment or reduced paid-up insurance is advantageous before prematurely terminating an insurance contract.

The Life Insurance Association urged consumers to actively utilize insurance contract maintenance systems. This is because if consumers terminate their insurance contracts early, due to the characteristics of insurance products designed based on fully paid premiums, the surrender value may be less than the total premiums paid, or re-enrollment in the same insurance may be denied, causing consumers to bear losses.

One of the insurance contract maintenance systems is 'premium payment deferment.' By using this, the insurance contract can be maintained without paying premiums for a certain period. Since risk premiums and administrative expenses necessary for contract maintenance are deducted from the surrender value, it is necessary to check your own surrender value.

The reduced insurance benefit system is also an option. This method reduces the insured amount of the insurance coverage and lowers the premium. The reduced portion is treated as surrendered, and the surrender value is paid. The reduced paid-up insurance system is a method where, when it is difficult to pay premiums due to financial circumstances, future premium payments are stopped, and a new insured amount is determined using the surrender value at that point, making the policy fully paid-up. The original insurance period and payment conditions of the insurance contract do not change, but the coverage amount decreases.

There is also the automatic loan premium payment system. When it is difficult to pay premiums, the amount corresponding to the monthly premium is treated as a loan against the insurance contract within the surrender value range according to the method set by the company, and is automatically paid to maintain the contract. However, since the principal and interest of the loan must be repaid, the burden may increase if used for a long period. Other options include 'partial withdrawal,' which allows withdrawing part of the reserve fund first, and 'extended term insurance,' which stops premium payments and shortens the coverage period.

Each life insurance company's products include provisions regarding insurance contract maintenance systems in their terms and conditions, so you can check the relevant details through individual terms or consult with the insurance company before use.

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