Cancer & Life Insurance?

[Al3x Lee]

I come humbly from the P&C forums bearing gifts as a token to the life insurance agents & their divine will.

I have a friend who is 58 years old and has a $500,000 term policy with State Farm that expires in 18 months. They have told him it is not convertible.

Last year he was diagnosed with stage 3c cancer that has moved into his groin. His pancreas has stopped producing insulin, and his cancer treatment has stopped until they can sort that out.

Needless to say, I think he knows his days are becoming numbered. He wants to leave his wife something if he can.

I can't imagine he really has an option to get life insurance once his state farm policy is up, does he?

 

[Allen Trent]

I come humbly from the P&C forums bearing gifts as a token to the life insurance agents & their divine will.

I have a friend who is 58 years old and has a $500,000 term policy with State Farm that expires in 18 months. They have told him it is not convertible.

Last year he was diagnosed with stage 3c cancer that has moved into his groin. His pancreas has stopped producing insulin, and his cancer treatment has stopped until they can sort that out.

Needless to say, I think he knows his days are becoming numbered. He wants to leave his wife something if he can.

I can't imagine he really has an option to get life insurance once his state farm policy is up, does he?

Man, that is terrible.

Couple things

1. Can you take some pics of his policy & post?

2. Term life doesn't normally "expire". The locked in current level period rate may be expiring & the premium will then heavily jump & then increase annually. The current & worst case that the rate can increase should be in the 1st few pages of his policy.

2. If the increased premium for the full premium is too much for him to afford, ask if he is permitted to keep a lower than $500k amount of that increased premium.

3. The policy contract language will have a section about converting to whole life or universal life. It may indeed be in the past as most term policies in the industry have gutted their conversion length in attempt to offer cheaper premiums.

4. Have him see if his employer benefits offer any non underwritten additional coverage at annual open enrollment

 

[DHK]

Maybe he can sell it for a viatical settlement?

 

[Allen Trent]

Maybe he can sell it for a viatical settlement?

Agree, but that would likely only be a possibility if it truly doesn't end in 18 months. If truly terminal, better to see if there is terminal illness rider or can find a way to pay premiums

 

[Allen Trent]

If he owns their select term, you can see here that it is renewable until age 95. Rates increase annually after the initial level rate lock term.

 

[Al3x Lee]

Thanks for the advice boys, I asked him for a copy of his policy. I'll provide an update once I've received it and have a chance to review