Hello and welcome. Thank you for providing an opportunity to assist you.
Yes, this happens and it is not unusual. The main reason is the age of the annuity that you have purchased. Life annuities make payments until you die. You might fear that you’ll pass away soon after annuity payments begin. To allay these fears, insurance companies offer guaranteed payment contracts that pay out for a period certain, even if you die before the period ends. The post-mortem payments go to your beneficiary. The contract may also offer a death benefit equal to or greater than the remaining cash value.
The main reason is -- your contract offers this benefit. This is one of the method of making most of the cash value and the amount of premiums that you have paid during your life time.
If you have accumulated a sizable cash value over the life of your permanent life insurance policy and do not intend to use these funds yourself, you may choose to leave a larger death benefit to your beneficiaries. How can you pull that off? It’s usually very simple. Just call your life insurance company and say that you’re interested in making a trade: You’d like to increase the death benefit in exchange for the cash value on your policy.
So, it is just that your contract offers such benefit and keeps you away and have option of NOT surrendering it and continuing with it.
I am sure this would help.
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