Have been trying to contact my agent for weeks. keeps flying airplane on me. Pru sent me a letter of illustration if i reduce premium, which is quite useless. It only shows how much the insurance coverage will be when i reduce premium.
What i mean by a loss is i.e. if i paid a total of 19k in premiums but my policy value is only 12k now. does it means i lose the 7k if i convert to paidup option?
If not wrong, only if you surrender your policy now would you realise this "loss" of 7k. (is the surrender value as of now stated ?) If any consolation, its not a total loss since you have been enjoying insurance coverage for the past 4 years.
Once policy is paid-up, I believe the 12k amount would still grow til maturity but at slower rate. You can estimate using maybe 3.5% compounding per year (or lower) to project maturity value until maturity. You shld be able to request for projection of cash value for your paid-up policy.
In any case, accept that there will most likely be "losses" since you want to stop paying premiums.
More importantly, the coverage of your paid-up policy will also be proportionately reduced.
I stand corrected. I am not insurance sales but have also taken up policies when younger & which dont make complete sense now.
