Life insurance

lovesrecess · ‎03-14-2010

I am not sure which topic to post this on, so sorry if this seems like the wrong place.

We are trying to figure out if we should cancel our life insurance or pay the $500 a month premium the company has now demanded, which is triple what we have been paying... $500 is the max that the IRS will allow them to charge. I looked into just selling the policy but that is definitely a racket.

Would like to know if anyone has ever let their life insurance policy expire. The policy is just worth 100K and I would rather keep the premiums in the bank. There will also be a 10-12K payment at the end of each year to pay for the deficit since the $500 is less that it will cost the company to insure us. I am thinking they want to toss us.

Mom2Dogs · ‎03-09-2010

@lovesrecess Do you work with a financial advisor? If so let them help you with this issue.

I don't understand why your premium jumped so much..have you been paying on it every month?

We have a life insurance policy that we review every year with our financial advisor.

kittyloo · ‎03-11-2010

@lovesrecess just my opinion here. unless you or your dh has serious health issues, and will not be expected to live much longer, i would kick these guys to the curb.

just to give some perspective, when my dh was on his deathbed with cancer, and not expected to live more than a month or so, i contacted the life insurance co, that i had a policy with. now this was ONLY a ADD (accidental death, or dismemberment) policy,on my dh, and the guy still tried talking me out of cancelling it.

i say cut your losses.

fthunt · ‎12-24-2010

I would toss them............

In my fifties I signed up for long term care insurance for the senior years - $2,000 per year. Paid it faithfully until I woke up one day and said Whoa..........I would have paid thousands by this time.

NicksmomESQ · ‎08-19-2014

@lovesrecess My DH has a term life policy.We pay X amount of dollars a year for our coverage. After 20 years when the policy expires the premium will go sky high but not before.We will then let it lapse & not renew it.

You need to explain a bit in order for us to understand your point. Is your policy expiring? Why are they suddenly raising your premium?

50Mickey · ‎05-21-2010

This sounds like term insurance. If it is whole life contact the company and find out the cash surrender value. Cash it in and put the money in the bank then if you can afford it put the $500 each month in a savings account. $500 per month for a $100,000 policy is not a good way to save money that is unless the insured iindividual is on his or her death bed.

KKJ · ‎03-11-2010

DH and I have several life ins. policies we've been paying on for years and none are over $50 a month for premiums.

wismiss · ‎03-10-2010

Unbelievable. $6,000 per year for $100,000 life insurance with a balloon payment of $10-$12K at the end of the year? $16,000 per year, would give you $96,000 if you saved the premiums for 6 years. Have you checked what the premium would be with two or three different companies? There are so many variables that no one can really advise you what to do because some people may have their house paid while others may not, etc. Your health would be a factor and is always an unknown even if you are in good health. One or two incomes is a variable that could influence your decision, also. Your age is also a factor. Not to be nosy, but are you close to senior age and would be eligible for something through AARP, through your church, or any other group you may have an affiliation with that might have a lower premium for the same coverage? Again, not to be nosy, but do you have a policy that generates dividends and how much would you lose? Or, is it better to cut your losses? I don't expect you to answer any of these questions---they are just for your contemplation of what is best for you.

“I can do things you cannot, you can do things I cannot; together we can do great things.” St.Teresa of Calcutta