Hi Douglas – There’s usually several options. You may be able to cash out the policy. Or you may have enough cash value/dividends that the policy will pay for itself (dividends pay the premiums, so you don’t have to). With whole life, the coverage doesn’t stop unless you stop making the premium payments, so it’s essentially permanent.

Hi Joan – Paid up life insurance. Most likely, it’s some form of whole life policy that’s built up enough cash value that the premiums can be paid out of the dividends from the policy.

Church,
WOW, I think that’s great! I wish I could understand or had an insurance agent take time with me to invest like you! I had an insurance policy Franklin Life I barrowed one time only! And it wasn’t that much! I had it since I was 15 years old! When I started making payments on the Universal Life Insurance Policy they CANCELED IT OUT! I just turned 42 years old! It was growing so much money! I couldn’t believe they could cancel my policy? I just been really hesitant to go to any INSURANCE PLACES AFTER THAT it was horrible. Where did all my money go???
I still wonder today?? I paid $35.52 a month. And all of sudden the insurance company and I barrowed $1000.00 from it. There was a bunch more in my account? But I became really ILL and I phoned the company etc? I didn’t even have to pay my premium but I did anyway because I didn’t want this to happen! I really thought when I was 15 and signed up for the account it was an excellent idea! And a great retirement investment! Can anyone tell me has this happened to anyone or why it did? Please email me! Thanks god bless everyone

The best course of action is to work with a reputable life insurance broker. He or she should know of some companies that have a more favorable view of smoking. You’ll still pay more for the policy, but you want to minimize the rating, and the premium. It does vary somewhat by company.