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Want to stop paying insurance premiums? Your options

Missing premiums doesn't have to mean losing everything you have paid in. Most insurers offer ways to pause, reduce or stop premiums and keep some value. Here is what happens when you miss a payment, and what you can do.

Last reviewed 15 October 2026. Options vary by insurer and plan; your insurer confirms what yours allows.

What happens when you miss a premium

The usual order of events for a traditional policy.

A grace period starts
Your cover usually continues for a short period while you catch up. Your policy states how long.
An automatic premium loan may apply
On some participating policies with enough cash value, the insurer lends you the premium from the policy's own value, with interest.
Otherwise the policy lapses
Cover stops. A policy with cash value may pay out what is left, or be converted under its terms.
Reinstatement may be possible
Within a time limit, insurers may restore a lapsed policy if you pay what is owed and, often, confirm your health.

Ways to pause, reduce or stop premiums

Act before the grace period ends, while you still have every choice.

Policy continues

Automatic premium loan

The insurer pays missed premiums by lending against the cash value. If the loan and interest grow past the cash value, the policy ends. How policy loans work

Permanent

Reduced paid-up

Premiums stop for good and the policy continues with a lower sum insured. Riders end and, on some plans, no further bonuses are declared.

Permanent

Reduce the sum insured

Lower premiums in exchange for lower cover and payouts. Some plans pay out part of the cash value when you do this.

Temporary

Premium freeze

Offered by some insurers on some plans. Manulife, for example, lets you stop premiums for a year with no charge; maturity moves back a year and no reversionary bonuses are added during the freeze.

Temporary

Premium holiday

For investment-linked plans. Premiums pause while charges continue to come out of your units, and a charge may apply for the shortfall.

Ends the policy for you

Sell or surrender

If you no longer need the policy, a sale may pay more than surrender for an eligible plan. Compare all your choices

At a glance

Option	Premiums	Cover and payouts	Can you undo it?
Automatic premium loan	Paid by a loan	Continue, less the loan	Yes, by repaying
Reduced paid-up	Stop	Reduced	Usually not
Reduce the sum insured	Lower	Reduced	Usually not
Premium freeze	Paused	Continue; maturity later	Ends after the freeze
Premium holiday	Paused	Continue while units last	Restart premiums
Sell	Paid by the buyer	Go to the buyer	Not once assigned
Surrender	Stop	End	Usually not

Premium questions

Will my policy lapse the day I miss a premium?

No. There is a grace period first, and some policies pay the premium by an automatic loan after it. Check your policy and call your insurer early.

Can I go back to full premiums after going paid-up?

Usually not. A reduced paid-up change is normally permanent, so treat it as a final decision.

Can I sell a policy that has lapsed?

Sometimes, if it can still be reinstated. Tell us about it and we give you a straight answer. What a policy needs

Do these options affect the price a buyer would pay?

Yes. A paid-up policy or one with an automatic premium loan is worth less, because its payout is lower or a loan comes off it.

Sources

Manulife Singapore: What are your options if you cannot afford premium payments? (checked 15 October 2026). Other insurers' options and terms differ.

If you no longer need the policy, see what it would sell for

We take over the premiums if we buy it. No NRIC, no obligation.

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