Should I cancel my whole life and just keep term life ?

Dec 29, 2018

  1. Jim1174
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    Jim1174 New Member

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    My term life lasts till I am90 something. I was thinking about canceling the whole life and just keeping the term life to save me money every month.
     
    Jim1174, Dec 29, 2018
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  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    You have 50-year level term? The longest I've heard of is 30 years, but there might be something else out there that I don't know about. Might want to double-check. It may be guaranteed renewable until age 100... but that's annually renewable term after the level term period runs out. After that, premiums go up a minimum of 10x per year.

    Term Life Insurance – State Farm®

    State Farm only has 30-year term (longest) per their website. So it's good until age 74. It could be guaranteed renewable until age 90, but that will have SERIOUS premiums after that time - at least 10x, if not 20x the premiums you're paying now.

    You're worrying about $40/month that is building a long-term cash value... particularly 10 years after you bought the policy where it's probably $1 for $1 credited to your policy's cash values? American Income Life may not be my favorite or preferred policy, but it's an asset for you.
     
    DHK, Dec 29, 2018
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  3. rousemark
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    rousemark Still Here!

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    It will last to "90 something" if you have the money to pay for it.. The premium will go up at the end of the initial term premium and then get to the point you may have a hard time paying for it.. I had a 15 year term that I bought years ago .. Premium was around $25,00 per month,,, Now it is over $200.00 per month and goes up every years and this is for a $50K plan..
     
  4. WinoBlues
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    WinoBlues Guru

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    You did the correct thing by asking questions. You really do not understand what you have.

    If you have the illustrations from your policies redact your info out thrn post the number pages here.

    Or better yet find an independent agent to help you.

    State farm. - you do not have a 'level term' to age 90. Your premiums will blow up. Just rewrote one I wrote 15 years ago. His premiums went from $550mo to over $7,000mo. For $750,000. His new plan is only $500k at $800mo for 10 years.

    AIL - Like Newby I have rarely see those be what the client thought they were. Mostly I see a small Whole Life policy with a term rider that is going to expire.

    There are some really experienced guys here. Keep asking questions.

    Lee
     
  5. Jim1174
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    Jim1174 New Member

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    So I should just keep every thing the way it is ?
     
    Jim1174, Dec 29, 2018
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  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    I would at least keep your whole life, because it's a cash building asset for you now.

    Your term... is probably convertible to State Farm's whole life, should you need to convert the policy. It may be a limited time to convert (such as the first 10 years), so see your contract and/or your agent for details.

    I don't know enough about your situation to determine whether or not you should have more coverage. Being single with no wife or kids... my only other question would be if you have any private student loans - because those are not forgiven at death.

    I would, at least, keep everything as it is.
     
    DHK, Dec 29, 2018
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  7. Northeast Agent
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    You have 50-year level term? The longest I've heard of is 30 years, but there might be something else out there that I don't know about.

    Obviously, what I'm referring to here isn't the above as it's new for 2019 but Levinson & Associates sent an email on 12/21 that Banner (Legal & General America) has a new 35 & 40 year term (longest in the country) with non-med consideration for healthy clients.
     
  8. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Good to know. Thanks!
     
    DHK, Dec 29, 2018
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  9. LostDollar
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    LostDollar Guru

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    Before anyone, including you, can answer that question, you need to take insights you have been given here and read your policies and see exactly what you do have.

    If you do not have whole life or level term, but behave as though you do, you will be in for a very very rude financial shock at some point in the future.

    Now; with the youngest age you can be, good health, a job and improved knowledge, is the best time you will ever have to create your best sustainable life insurance situation for your future.
     
  10. rousemark
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    rousemark Still Here!

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    It is not possible to answer that without knowing exactly what you have.. You need a good independent life agent you can trust to advise you.. Since you are in Calif., Lee Martinez, wino blues on the forum, would be a good choice.. David Kinder -DHK - would be also.. Give one of them a call.
     
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