Reduce Death Benefits
If the policy is a universal life insurance policy, the death benefit can be reduced. However, for a whole life policy, death benefit could be reduced through a partial surrender (either of the base policy, or the PUAs), unfortunately this may trigger taxation.
The good news is that less death benefit means lower cost of insurance which may make the policy sustainable.
The bad news is that less death benefit means less payment to the beneficiaries if a death occurs, but it is better than nothing is the policy lapses.
In our next blog post, we will discuss another solution for a cash value policy faces policy loan problems.