Jayson Lowe walks through what to do if you can't keep funding a whole life policy in Canada. Start by talking to your coach, then try reducing overfunding or borrowing from the policy itself. Surrendering the whole policy is a last resort because it can make you uninsurable later and kills your compound growth.
What if I lose a job? Can't fund deposits. Yeah, life happens and when it happens, sometimes it sucks. Generally that's a temporary situation for most people. So there's a variety of kind of levers that we can pull on. Number one thing you would want to do is you'd want to call your coach, your practitioner and like let him know what's happened so you or him or her know what's happened so that you can actually start that conversation. But number one, you can reduce the overfunding. So that's, that's the first step. Then you could take a policy loan that's basically savings that you stored up. So if you need to use your emergency savings, well, that's one of the places where it's stored. You can look at reducing the policy size. That is a one time change. If you go down, you can't take it back up again. You're making a permanent change, irrevocable on the contract. So we don't want to do that, but if we have to, it can happen. You might also be able to surrender some of those paid up blocks that I drew up. That's potentially an option in the very, very last resort. The nuclear option is to surrender the policy or collapse the policy. When you do that, it's a huge pain because now if you're uninsurable, well, you're screwed. You can't get more insurance, you give up the compound effect. Everything you started building is now, it's just not a good situation. So we always try to avoid that if possible.
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