Which Companies Offer Declining Death Benefit Variable Premium Policy

Mar 14, 2016

  1. blint
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    blint New Member

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    Are there any companies that would sell me a 15-year term declining death benefit variable premium policy with a $250,000 initial death benefit, so that I could gradually opt to reduce the benefit, on annual basis, possibly to as low as $100,000 or even $75,000 in the final few years of the policy, which would enable me to continue to afford the premiums as I get older?

    Salient facts: married, age 61, male, non-smoker. Borrowed against house to pay for college tuition of first two kids (about $175K mortgage balance); also took out $75K Parent PLUS college loans to pay for third child's college. Current insurance needs minimum $250,000.

    State: PA
     
    Last edited: Mar 15, 2016
    blint, Mar 14, 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. rousemark
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    rousemark Still Here!

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    You can do that with virtually any universal life plan....
     
  4. blint
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    blint New Member

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    I'm in Pennsylvania.

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    I have a policy now where I was supposed to be able to reduce the death benefit on an annual basis to keep the premiums affordable, according to the agent (who is no longer with the company) but the current agents who have taken over for him tell me the lowest I can take it down is to $250,000. I cannot find any language in the policy referring to this minimum death benefit allowed.
     
    blint, Mar 15, 2016
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  5. Newby
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    Newby Guru

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    Take out $100,000 on a 15-year term. $75,000 on a 10-year term. $75,000 on a 5-year term.

    It's called laddering.
     
    Newby, Mar 15, 2016
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  6. WinoBlues
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    WinoBlues Guru

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    How old are you? If you are 40, then maybe. If you are 80 then probably not. Not term anyway, maybe a GUL.

    You need to find a plan that has a minimum face amount that is as low as you will want to go.

    As Newby said laddering could be an option, however when you get to five year plans or $50,000 plans the premiums could be as high as a 10 year $100,000 plan due to cost per thousand bands and limited company choices.

    Protective may work. Look at a 10 and 15 year illustration and it will show you the decrease at the end of the 10 year period.

    Do not try to hard to game this.
     
    Last edited: Mar 15, 2016
  7. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    He's 61.

    ***************
     
    DHK, Mar 15, 2016
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  8. WinoBlues
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    WinoBlues Guru

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    Ha, I am old, I fell asleep after the first paragraph.

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    Get 2 10yr $125,000 policies. Drop one if you choose 5 to 10 in years. Make the second one a protective. It will decrease in year 11 to about half.
     
  9. Mattschmidt
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    Mattschmidt Guru

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    Most term companies let you reduce the death benefit amount over time.

    However, certain companies do not go below 100K. So keep that in mind
     
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