Re: Policy No. ____________ I am insured with you for ____________ (Amount) and my policy No. ____________ is quoted above. I have been paying premium to you regularly for the last about ____________ (No. of years) but my circumstances have changed and I find myself unable to continue making payments in future.
I, therefore, request you to convert my policy as paid-up and let me know how much amount I shall be entitled to get at the time of maturity. My policy is enclosed herewith for necessary action. Thanking you, Yours faithfully,(Your Name)
Reply regarding paid-up policy
From(Insurance company Name)(Address)(Date) To(Your Name)(Address) Dear Sir, Re : Policy No. ____________ We are in receipt of your letter dated ____________ along with the above policy. We are sorry to learn that owing to certain circumstances, you are unable to continue with this policy and desire us to convert it into paid-up. We add to inform you that the paid-up value of your policy with effect from ____________ (Date) is ____________ (Amount) excluding bonus. If you stop paying your premium, the policy will automatically become paid-up for the above amount and there is no need for formally endorsing it as such.
We take the liberty of drawing your attention that by making it paid-up, tie policy will not be able to fulfill your twin objects of providing for your old age and building a house. In a paid-up policy they sat assured is considerably reduced and this cut will drastically reduce your purchasing power with this sum. We don’t know why you have decided on this step because your general remarks have taken us nowhere.
It is possible someone might have misguided you. We, therefore, request you to reconsider your decision and be frank with us. It is possible we may be able to help you in continuing your policy. Remember we are increasing bonus year after year and this year we fixed it at ____________ (Amount) per thousand. Just imagine how much you will be losing by not changing your mind! Thanking you, Yours faithfully,(Branch Manager Name)(Insurance Company Name)(Address)
