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 Posted: Thu Jul 30, 2009 12:06 pm Post subject: |
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| Quote: | | Hi and thank you for your time, I have whole life 150,00 policy paying 175.00 monthly i'm 47 years old, cash value 26,000 and thinking of surrending it, taking cash value out, buying level term policy for 150,000 30 years , paying 84.00 monthly would that be smart or what do recomend? |
A few things to note:
1. Keep in mind that if you surrender your policy, you may also incur a taxable event if the cash value paid out is greater than your cost basis (i.e. premiums paid into the policy).
2. $84/month seems awfully high for $150k of 30-year term for a 47 year old female. Even at standard rates, I come up with $50/month for a couple of companies. A $150k policy guaranteed forever (no-lapse UL) at standard rates would be approximately $110/month. If you are in good health with normal height/weight profile, normal family medical history, those premiums could drop to ~$90/month guaranteed forever or $29/month for 30-year term.
3. If you did not want to pay any more premiums, you could exchange the cash value for a paid-up policy that is guaranteed to never lapse with a different company. If in perfect health, you could get a $250,000 death benefit with a lump sum transfer of approx. $25.5k. If in standard health, you could get approximately $210k death benefit with a lump sum transfer of $26k.
If you want to explore these options, feel free to send me an e-mail at dgold@goldfinancialgrp.com. I'm an independent agent and would be happy to put you on the right track. Sounds like your current agent is trying to sell you an overpriced policy unless you have some major medical conditions. |
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dgoldenz
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| Posted: Sun Jun 27, 2010 8:41 am Post subject: mortgage and life insurance |
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my mortgage and life insurance is with the same company. will they accept my life insurance before i die as a trade to pay off my mortgage and then no life insurance payment is made when i die
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bev k
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| Posted: Sun Jun 27, 2010 3:22 pm Post subject: |
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I guess the key phrase here is "before I die."
Allianz used to sell a product called an Equity Index LifeFund III that, in my opinion, was one of the best policies I've ever seen.
Built into the policy was something called a Preferred Settlement Value (which was really nothing more than a type of modified accumulation account) that could be used at retirement - or some point in the future - as a source of income. However, when the PSV was utilized, the policy was terminated.
Now, back to your question; I've never seen a case where a mortgage/insurance company traded the settlement value of a life policy in that way. I'm not saying it absolutely couldn't happen - especially if you were terminally ill and the company could benefit from the transaction (the most important provision). I just seriously doubt they would do it.
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Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away. |
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InsInvestigator
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| Posted: Wed Jan 25, 2012 3:55 pm Post subject: |
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| This is not a relationship advice column. Moderators, please delete the spam posts and block the spammers please. |
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Heller
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