by purplejle » Tue Oct 16, 2012 03:10 pm
I have a whole life policy that i have had for 36 years. I have not had to make any premiums for years. The policy is for 100,000.00 plus 15,000.00 it has made in dividends. So I have 115,000.00 in insurance at my death. An insurance guy from Banker's Life wants me to transfer the cash value of the policy, which is 75,000 to another whole life policy.He says he can get me 38,000 more in insurance without paying any more premiums. What do you think?
Posted: Tue Oct 16, 2012 06:50 pm Post Subject:
I think he's blowing UNIVERSAL LIFE smoke in your face. Tell him to pound sand and then run for cover.
Posted: Wed Oct 17, 2012 12:04 am Post Subject:
It probably is UL and without any additional premiums, it is very likely that the OP can get a greater guaranteed death benefit. That does not mean that it is in the OP's best interest.
Posted: Wed Oct 17, 2012 12:42 am Post Subject:
That does not mean that it is in the OP's best interest.
It's most likely based on chewing up all that cash value to pay premiums. And that would probably be a dreadful change of coverage. The OP could probably add another $38,000 of coverage to his existing policy just by asking to be underwritten for it.
Obviously, I don't know the OP's insurance needs, but in my mind, that's not enough of an increase to justify the change to another policy either. And a new policy brings with it the possibility of a substandard rating and a new two-year period of contestability, which could inadvertently leave the OP completely uninsured at the moment prior to his death.
Based on what little was said, I see almost no upside to this proposed policy. Especially if it means giving up $75,000+ in cash value over time just to buy an extra $38,000 of coverage.
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