On Wed, 10 Jun 2009 16:32:41 +0100, "robgraham"
wrote:


"Mark" wrote in message
.. .
On Wed, 10 Jun 2009 12:50:06 +0100, "robgraham"
wrote:


"Mark" wrote in message
...
Can anyone please explain, in a little detail, what "non-forfeiture"
means with respect to endowment policies. I have an outline
explanation only, at present.


Even if you stop paying the premiums there are possibly some benefits that
you will not lose, for example, the fund value if any, or continuing life
cover paid for by reduction in fund value. These are called
'non-forfeiture
values' because the contract specifies that you'll go on getting them even
if you stop paying.

Would the non-payment be treated as borrowing against the policy and
therefore, would interest be charged on this?


It would steadily drag on the fund value but not be actually treated as a
loan with an interest charge, but to get to the real details I feel you
should consult the insurer. Each will have their own wrinkles and terms and
conditions, meaning that a global opinion may not be true in your case.

Thanks. I intend to consult the insurer but every time I do I get
more new questions to ask!

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