Matthew Naranjit Insurance Advisor

When determining an individual’s premium cost, an insurance company considers numerous associated risk factors. This is called the cost of insurance and it can vary from individual to individual.

A fact that stands out to me as an agent is, yes insurance is paid for with money, but it is primarily bought with AGE and HEALTH.

👉For more information, set up a free consultation with yours truly, Matthew Naranjit Sales Representative at Pan-American Life Insurance Company Trinidad and Tobago.
👉Mobile/WhatsApp: 798-1652 or 750-6826
Email: [email protected]

👉Know the difference! The cash and surrender values of a policy may not be the same. The surrender value has charges built into it. Insurance policies are meant to be a longer-term financial instrument, hence these surrender charges diminish over time. It is possible for the surrender value to equal the cash value of a policy.

👉When withdrawing from your cash value, pay attention to the type of withdrawal you are making. Depending on the type of policy you have, it can be a loan (subject to low interest rates) or a cash withdrawal (subject to withdrawal fees).

👉 It is also important to understand that a policy loan is not taken out of your cash value but borrowed against it. The insurance company uses your policy as collateral for the loan because they are not allowed by law to give unsecured loans.

👉If you take a policy loan, interest is added to the balance and accrues whether the loan is being paid monthly or not, putting your loan at risk of exceeding the policy's cash value and causing your policy to LAPSE. This is very important to understand.

👉There is no mandatory monthly repayment of the loan. However, if the loan is not paid back before the insured person's death, the loan amount plus any interest owed is subtracted from the death benefit paid to your beneficiaries.

👉For more information, set up a free consultation with yours truly, Matthew Naranjit Sales Representative at Pan-American Life Insurance Company Trinidad and Tobago.
👉Mobile/WhatsApp: 798-1652 or 750-6826
Email: [email protected]