Avoiding lapse of universal life policy

I don't know much about life insurance, but a family member asked me to help him understand his "Flexible Premium Adjustable Life Plan"" universal life policy from North American. The policy was issued in 1993 and has a $100k level death benefit. The current surrender value is $4,700. The agent he worked with passed away, and my relative wants to make sure the policy does not lapse.

The annual statement shows premiums paid i/a/o $1,000, "charges" of $2,480 and interest of $203. The ins co auto debits $250/quarter in premiums from his bank. The online account at the ins co shows a "target premium" of $785. There is some scary wording in the annual statement about the policy lapsing in September of this year if no additional premium payments were made.

It is my understanding that he needs to increase his quarterly premium to approximately $785 to cover the annual costs of the policy. He would also have to increase the premium amount each year if the costs increase. Am I understanding that correctly? Is there any benefit to paying slightly more, just to be sure the policy doesn't lapse?

Thanks!

submitted by /u/InfoInvAcct
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