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Don't drop your life insurance

Life Insurance » Don't Drop Your Life Insurance

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Doctor's prescription and stethoscope

If disability caused your financial hardship, you could be eligible for a break from your life insurance payments. Known as a waiver of premium, this feature is often available as an additional rider, says Smoot.

"With waiver of premium, the carrier is paying the premium, so the value of the policy continues to grow," says Smoot.

In addition, if you are chronically or terminally ill, you could be eligible for accelerated death benefits for chronic or terminal care needs if your policy provides benefits (and many do).

To collect benefits early, Smoot says policyholders will have to prove they are seriously ill or disabled and should discuss the monetary ramifications of pulling benefits early with their financial planner.


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