Failure to pay premiums.
Consider a Life Settlement to see if you qualify. Try selling it before it lapse. Research Life Settlements.
There is no question of payment when the policy is in lapsation status. When premiums remains unpaid for 5 continuing years, the policy is automatically lapsed and cannot be revived.
agents whose clients keep their policies in force for many years
What do you mean "Sell" the life insurance policy? Once it is back in force and you are the owner, you can cash it in at any time if there is in fact a cash value. I guess you would have to better define what you mean by selling it.
A life settlement is a financial transaction in which the owner of a life insurance policy sells an unneeded policy to a third party for more than its cash value and less than its face value. Until recently, if a policyowner opted out of a policy by surrendering the policy or allowing it to lapse, the additional value was relinquished back to the issuing life insurance company.
All of these factors contribute: short life expectancy, low birth rates, and disease
Loans coming from a life insurance policy are not debts. If you die and you didn't repay the loan, the loan amount plus interest is deducted from the face amount of the policy. If you cancel the policy or let the policy lapse while there's a loan balance, you will owe income taxes on the loan.
It all depends on many factors: the client's age, gender, resident state, tobacco user or not, health issues and medications ... For example, a healthy Male, age 35, non smoker, can get $200,000 WL policy for $116.17 per month (with Company A) and a UL - NO-LAPSE-GUARANTEED policy for $200k for $79.93 per month (with Company B). Premiums will never change for the life of the insured, and the policy is guaranteed to stay in force.
A life insurance policy lapses when you stop paying premiums, or if cash value depletes and no more premiums are being able to be paid from the cash value. Usually, there are 30 or 60 days of grace period before lapsing.
If you die a life insurance policy pays an amount of money to a person you name. You have to pay premiums otherwise your life insurance will automatically lapse after 30 days.
Cash value loans will allow you to keep the policy in force and preserve coverage (sometimes for a lower benefit amount). If you decide to cash out the surrender value instead, your policy will lapse and you lose the life insurance protection.
The insuring company provides us the insurance policy based on the premium amount we pay them on a regular basis. This can be monthly or quarterly or half yearly or even annual. A policy lapse means that the life insurance contract between the insurer and the insured (YOU) is terminated.