Help - Life Insurance Decission

May 8, 2008

  1. Loly
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    Loly New Member

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    We have been married for 34 yrs, he is 57 yrs old, I am 54 yrs old, both in perfect health, no smoking or alcohol ever, have had both Universal Life for 100,000 on each and 30 yr Term for $200,000 on each for approx 11 yrs, our problem is now he has lost his job, we are in a very tight financial situation and need to let one of these go, we are looking right now to only keep our home protected (150,000), but don't know what the best decission would be. We are thinking maybe cancel the Universal, and keep the Term for only $150,000 on each, but the only thing is the Term takes us only to 2030, so we are afraid what happens then after that?, we have our Term with First Colony, can they add another let's say 10 yrs to this actual policy we have now to make it to 2040, because if we cancel this one and open another one I am sure the price will be way higher being that we are older now. I am all confused. Please help, we need advice on what the best way to go would be.... Or there might even be a better way that we don't know about, we just hate to loose all the money we have already put in these policies, the Universal money I know we would get back which we desperatly need, but hate to loose all the money we have put in the Term. We are completely lost. Tks so much.:embarrassed:
     
    Loly, May 8, 2008
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  2. ims01
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    ims01 Guru

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    Loly,

    I hate to advise you drop anything, but I understand your situation. If the insurance is for mortgage protection then consider how much longer you will owe on your mortgage. If it will be paid off or close to it by 2030, then the best solution may be to drop the UL and reduce the face amount on the term. But, before you drop the UL check if there is any cash value and if there is any surrender charge. If you are still in the surrender period, you might consider keeping the UL and see if you can drop the term to $50,000 or drop it completely and get a new $50,000 ten-year term.

    Any increase in the face amount or term of your current policy would require all new underwriting.

    Ed Gentry
    866-232-3370
     
    ims01, May 8, 2008
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  3. LGilmore
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    LGilmore Guru

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    How long have you had the UL's? Could there possibly be enough cash value to run them without additional funding for now? The idea behind UL was flexible premiums so if there are cash values check with the company to see how long they could run internally. Switch the mode to annual and have the policy paid from the inside. If you can reduce the face of the term policies that may help. But check and see if you can run the Ul's from the inside first. Then no current money has to go into them until things get squared away.
     
  4. Mr. Bill
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    Mr. Bill Guru

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    Loly,

    No one on this board can give you an appropriate answer as we don't know all of your financial situation.

    Since circumstances have changed, you need to look at all areas of your budget before "giving up" something you may not qualify again for, as in life insurance. Perhaps this is the time to reassess the personal trainers, pool boys, gardeners, etc., especially cable/satellite tv.

    Keep your spirits up, but please understand we can't answer that question directly.

    Good luck!
     
  5. xrac
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    xrac Guru

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    Loly,

    My advice would be to find a trusted advisor, someone who specializes in life insurance (preferrably with a major mutual company) and set down with them and show them your policies and ask for advice. There will be no charge to do this and it can be very much worth your time. A good professional will look for creative ways to help you and maybe able to reduce your costs while maintaining coverage. The problem you have now obviously is that you have no one you trust. Good mutual insurance companies include Guardian, Mass Mutual, Northwest Mutual, etc.
     
    xrac, May 10, 2008
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  6. LGilmore
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    LGilmore Guru

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    Only Mutual companies? :) Only mutual company professionals? :)

    Man, what flavor is your kool aid?
     
    LGilmore, May 10, 2008
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  7. xrac
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    xrac Guru

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    My kool aid is flavored with LEAP.
     
    xrac, May 10, 2008
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  8. LGilmore
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    LGilmore Guru

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    I guess I'm just a little too grizzled.. good luck with your leap system. Just remember no matter who you "work" for, you're on your own.
     
    LGilmore, May 11, 2008
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  9. NewHealthStrategies
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    NewHealthStrategies Super Genius

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    LEAP... the Little-blue-pill for life agents.......


    A Reformed LEAP Graduate (one of the 1st)
     
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