"Non-forteiture" in Endowment Policies

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.

Rob Graham

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.

Rob

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