Life Insurance Contractual Obligations

A life insurance policy is the written contract that formalizes the agreement between the life insurance company and the policyowner. The insurance company is the only party to the contract that makes an enforceable promise. While it is true that the policyowner must pay the premiums as they come due to keep the policy in force, no promises are made to continue paying those premiums. The option to stop paying at any time and allow the policy to lapse always exists.

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