SBLI Policy Lapsed in Past Year. HELP! where Do I Start Now?

Mar 6, 2016

  1. wad2k16
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    wad2k16 New Member

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    Let me start off by admitting that life insurance was the furthest thing from my mind and I really had no interest...and still have very little interest in learning much about it. So I'm turning to this forum in hopes of getting some "simple" advice as to what I should do.

    When I was in my mid 20's I got a 100K SBLI policy

    Im 47 now and mistakenly let this policy lapse about 8 months ago..
    My wife and I agree that a 100K policy is enough for me.
    Can this policy be reinstated? If so, is it worth reinstating or would it be better/less expensive to just start out fresh with a new Term policy?

    If it is better to start out fresh, where do I go, without being overwhelmed with having to make too many decisions.? Basically, I just want to keep it simple and as inexpensive as possible.

    The lapsed policy was 1 yr renewable and convertible( still don't understand that part) started back in 1997 with annual premium of $100. Premiums increased every year with last amount that was due/unpaid in May 2015 being $266. Increasing every year according to policy in 2020=$417, 2025=$652, 2030= $998.

    As far as my current heath:
    Healthy as far as I know...47 non smoker, not taking any meds. Other than some bruised ribs last year, not much of a medical history for me other than annual doc appointments which are fortunately uneventful. I could probably stand to lose 5 lbs but not overweight. Family history of diabetes and cancer on mothers side.

    What is the best and least expensive thing to do without me having to overthink this?? Im just looking for $100K coverage right now for a policy that I can just pay make my annual premium and not think about it. Yes. when it comes to this stuff.... I'm lazy!

    Thanks in advance!
     
    wad2k16, Mar 6, 2016
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  2. Tahoe Ray
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    Tahoe Ray Guru

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    What state are you in?
     
  3. go4life
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    go4life Expert

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    You can get the quote via the link below and easily make decision

    Easy Life Insurance Quote
     
    go4life, Mar 6, 2016
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  4. wad2k16
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    wad2k16 New Member

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    wad2k16, Mar 6, 2016
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  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Tahoe ray is licensed for NY. I know he'll take good care of you.
     
    DHK, Mar 6, 2016
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  6. WinoBlues
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    WinoBlues Guru

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    Unless the future _guaranteed_ premiums are _guaranteed_ to be lower for the period you want than a new _guaranteed_ level term plan, replace it.

    To answer your questions:

    To reinstate you need to contact the company and ask if you can reinstate. If so you may need to do a physical exam and or medical records. There will be a new contestable period as well. All same as taking out a new plan. Other than, maybe, lower short term premiums. There probably are few if any advantages to reinstatement.

    Rewriting a new plan. Decide if you want an Insurance Agent or a Insurance Salesman. Pros and cons to both. No cost difference in either one.

    Know that all term is not created equal. There features included with some plans that are not available in other plans. There are extra riders available that could be as valuable as the death benefit. Plans and features today did not exist before.

    Are you wanting something quick and easy with no exam or are you willing to do an exam to possibly save some money. Are you interested in an exit plan for when your term plan Terminates? Important.

    My recommendation, talk to an agent and let them do the work of coming up with options.

    Edit: NY, talk to Ray. (Tahoe Ray)
     
  7. tlmarketing
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    tlmarketing Guru

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    You should call policy owner service of the company and ask them what their rules are for reinstatement.

    In most cases, if they will reinstate, they will require a reinstatement application, approval from underwriting that you are still insurable, and all back premiums from the point in time the policy lapsed until now.

    Once you have those answers, compare to new coverage to see which option is best long term. New coverage will most likely be a better option at this point...10 year term rates for preferred rate class start around $178 per year....bigger question may be why only $100k in coverage?
     
  8. walthamny
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    walthamny Guru

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    I am licensed in NY, but I only write clients that I personally know from Boston. SBLI NY is a separate entity then SBLI. If you bought your policy under SBLI NY or SBLI USA, the company faced hard times and they were asked to suspend writing any new business in the state of NY. I am unsure what the rules are for re-instatement once the state takes over. I would ask someone experienced to guide you locally. It is a rare event for a state to take over a life insurance company. SBLI of Massachussetts is doing fine by the way. Confusing yes. That's why talk to someone face to face locally to figure out.
     
  9. Robert Barney
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    Robert Barney Guru

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