What happens if I stop paying premiums on my life insurance policy?

When an individual ceases to pay premiums on their life insurance policy with Jackson National Life Insurance, several outcomes may occur, depending on the specific type of policy and its terms. For example, if a policyholder stops paying premiums on a whole life insurance policy, the insurer may allow the policy to remain in force for a time through the use of accumulated cash value. The policyholder may access this cash value to cover premium payments, but it is crucial to be mindful that using the cash value can reduce the death benefit and may lead to other implications. In contrast, if the policy is term life insurance, failing to pay premiums generally results in the policy being lapsed, which means that the coverage would end. If the policy lapses, the insured individual may face challenges in obtaining new coverage later, especially if their health has changed since the initial policy was issued. Many policies offer a grace period, typically around thirty days, allowing policyholders time to make the payment without losing coverage. If the individual reinstates their policy within this grace period, coverage can often continue without interruption. It is advisable for policyholders to review their policy documents to understand the specific conditions that apply to their situation. Information about potential options such as reinstatement or conversion to an alternative policy may also be available on the Jackson National Life Insurance website.