We have written about unaffordable premiums in detail across several articles. This one is intended as the single page to save and open on the day you actually need it: every option summarised as a six-step ladder from lightest to heaviest, with the points people most often get wrong.
The six-step ladder, from least to most impact
Step 1 — use the grace period (free, no impact): you may be around 30 days past the due date with cover fully in force. Suited to a cash flow gap of a few days to a few weeks.
Step 2 — change the payment frequency (very little impact): from annual to monthly or the reverse, spreading the burden to suit your cash flow. Simply notify the company.
Step 3 — a policy loan / APL (interest applies, but cover continues): a policy with a cash value can borrow to pay the premium, either on request or automatically. Suited to bridging a short crisis of one or two instalments — repay it promptly.
Step 4 — reduce the size of the cover (partial impact, temporary or permanent): remove the least necessary riders, or reduce the sum insured beyond your obligations, keeping the core.
Step 5 — stop paying but keep cover (permanent; nothing more is paid): choose between paid-up value (lower sum, same term) and extended term (same sum, shorter term). Riders generally terminate.
Step 6 — surrender (last resort; you get a lump sum and lose everything): for when you genuinely need the cash and have thought it through completely. Always read our five questions before surrendering first.
The four most common mistakes
- Going silent and letting it lapse — losing everything without using a single right. Every step on the ladder starts with contacting the company or the agent.
- Jumping straight to step 6 — when steps 1–5 might have solved the problem without losing cover.
- Using an APL and forgetting it — the interest compounds quietly until the value runs out and the policy lapses without your knowing. Set a reminder to review every time you use it.
- Cutting the health insurance before anything else — when it is the hardest thing to buy back, because your health conditions have changed. The correct order keeps health cover until last.
Choosing the right step, in two questions
Ask yourself: one, "is this money problem short or long?" Short (no more than two or three instalments) → steps 1–3; long → steps 4–5. Two, "do I still need this cover?" Still needed → never go beyond step 5. Genuinely no longer needed → step 6 can be considered. For the detail, read our article on temporary difficulty paying premiums and our question-and-answer edition.
Prepare before the crisis arrives
Three things to do today while you can still pay: know what cash value each policy has (look at the table in the policy or ask the company); set up automatic payment so nothing is forgotten; and always keep an emergency reserve covering at least one instalment. Anyone who does those three rarely needs the higher steps at all.
In short
Save this page: the six-step ladder — grace period → change frequency → loan/APL → reduce size → paid-up/extended term → surrender. Choose the step by how long the problem is and how much you still need the cover. And remember the one iron rule: always contact the company before deciding. If you are in this situation now, message us on LINE and we will look at which steps your policy allows.
This article was inspired by material from the Thai Financial Planners Association (TFPA) and has been entirely rewritten.