UL from the 80's Help

[GoCubsGo]

63 yr old nonsmoking F bought a 50k UL from United Ins of America in 1986. She pays $77 every 3 months. Premiums increased once. Policy burned up in a fire.

She borrowed $500 and says it's grown to $3,000 now. She is on a fixed income (disability) and will never be able to pay the loan. She doesn't know what the CV is.

What should she do?

Won't she probably see some hefty increases to keep it going through her senior years?

Conversion to WL if they allow it? Could she have enough CV to get anything?

 

[TwiLight]

63 yr old nonsmoking F bought a 50k UL from United Ins of America in 1986. She pays $77 every 3 months. Premiums increased once. Policy burned up in a fire.

She borrowed $500 and says it's grown to $3,000 now. She is on a fixed income (disability) and will never be able to pay the loan. She doesn't know what the CV is.

What should she do?

Won't she probably see some hefty increases to keep it going through her senior years?

Conversion to WL if they allow it? Could she have enough CV to get anything?

First thing is to get a duplicate policy. Have her call Home Office with policy number and get a duplicate. Also have them send a current illustration and the last annual statement if she no longer has it.

You can only evaluate it once you have all the info. The Loan can be paid with a withdrawl and she could also use the balance to pay for a reduced paid up insurance plan. This is one option.

If there is substantial Cash, she could roll it to a new SPWL policy.

Many options, start with getting values, duplicate policy and current illustration.

 

[Norwayguy]

63 yr old nonsmoking F bought a 50k UL from United Ins of America in 1986. She pays $77 every 3 months. Premiums increased once. Policy burned up in a fire.

She borrowed $500 and says it's grown to $3,000 now. She is on a fixed income (disability) and will never be able to pay the loan. She doesn't know what the CV is.

What should she do?

Won't she probably see some hefty increases to keep it going through her senior years?

Conversion to WL if they allow it? Could she have enough CV to get anything?

Conversion of a UL? She could "convert" to another carrier if insurable.

 

[GoCubsGo]

First thing is to get a duplicate policy. Have her call Home Office with policy number and get a duplicate. Also have them send a current illustration and the last annual statement if she no longer has it.

You can only evaluate it once you have all the info. The Loan can be paid with a withdrawl and she could also use the balance to pay for a reduced paid up insurance plan. This is one option.

If there is substantial Cash, she could roll it to a new SPWL policy.

Many options, start with getting values, duplicate policy and current illustration.

I had told her to call Monday for a duplicate policy, the CV and if she could convert to a pd up WL. I will have her add a current illustration, that would be helpful. She said she can dig up the annual statement. I told my thinking was if she could get a decent pd up policy that might be to way to go.

I don't have a lot of experience with UL's but I'm thinking that when the premiums went up the CV must have been about gone and with the $500 loan going up and now at $3,000 there can't be much there now. I'm thinking she is probably on the verge of another increase to keep it going and that will just get worse with time as she goes into her later 60's and 70's.

Got roped into helping her otherwise I wouldn't be dealing with this cr@pola.

 

[WinoBlues]

I had told her to call Monday for a duplicate policy, the CV and if she could convert to a pd up WL. I will have her add a current illustration, that would be helpful. She said she can dig up the annual statement. I told my thinking was if she could get a decent pd up policy that might be to way to go.

I don't have a lot of experience with UL's but I'm thinking that when the premiums went up the CV must have been about gone and with the $500 loan going up and now at $3,000 there can't be much there now. I'm thinking she is probably on the verge of another increase to keep it going and that will just get worse with time as she goes into her later 60's and 70's.

Got roped into helping her otherwise I wouldn't be dealing with this cr@pola.

I do quite a few of these. I agree there is probably nothing left. As CYA also ask what the minimum the policy can be reduced to and get a premium search to carry the policy to maturity based on _guarantees_. The annual report and inforce will tell you when this will implode as is. Then plan on replacing it.

If you would like a second pair of eyes on this I would be happy to help.

Lee

I find doing the call as a three wayvsaves me time in the long run. Oh and she will not bed able to convert this. Lee

 

[scagnt83]

1. Copy of policy

2. Current inforce illustration

If the inforce looks fine then do nothing.
If not...

3. Inforce showing min premium to make policy last until age 100.

4. Inforce to 100, showing a reduced DB using the current premium.

If she is still insurable you can always look at a 1035.

I have dealt with lots of ULs from the 80s. Some are crashing, some are perfectly fine... especially if they did not use the Min premium.

So do not just assume that just because it is a UL from the 80s it is going to crash. I have seen some very well performing policies from the 80s.

But from what you have said so far, this does not seem like a well performing policy.