Should Keep or Look into term Life Insurance Quotes?
I have a whole life policy which I have been paying 45.00 per month for 16 yrs. I have to pay this amount until age 99 so they say. The amount it was for when I bought it was 50,000. It builds cash value. I am now 62. Should I keep this policy or look into term insurance?
June 19th, 2009 at 3:23 PM
We have no idea. What's the GOAL of the insurance policy?
At 62, I'm assuming you have no minor children. If you have enough assets that your estate can pay for your funeral and cover your debts, why do you have insurance in the first place?
You need to define the exact GOAL the the insurance is to acheive, and THEN decide which policy meets that goal best. That includes, deciding how LONG you want to keep life insurance. If you never see a time when you don't need it, then whole life is the one to have.
Having said that, whenever you are shopping out for new insurance, or comparing prices, you do NOT want to let your current policy lapse, until your NEW policy is already in place - you might not even QUALIFY for life insurance now! There's no way to know, until you have the policy in your hands.
So. Define your goals. Select the tool. Comparison shop, and don't cancel the old policy, unless you have already replaced it, or have decided you don't need life insurance. Try this site
http://free-best-life-insures-comparator-usa.blogspot.com/
Here you can get quotes from different life insurance companies in your area, its the best way to find an affordable life insurance with a reliable company.
June 19th, 2009 at 3:23 PM
A 20 year term policy at this point is $45/month (assuming great health) so it'd be foolish to cancel it for a term policy.
June 19th, 2009 at 3:23 PM
I do not advice anyone buying the kind you bought.
However, since you have had this policy a long time already, it would probly not be a good idea to cancel it. There may be other options you can use and keep the policy you have. Like, for example, does the policy earn dividends? If it does can you use those dividends to pay the premiums so you don't have to pay the premiums any more? Or can you use the dividends to reduce the premiums? If you can do then you might get a 2nd policy in order to purchase more insurance, but that all depends on what you can do with the policy you already have. If you have no options on the policy you have now then just keep it. But after all these years, I get you have some options. Call your insurance agent and ask. After, all asking is free. Just don't let them sell you anything you don't need or anything that would not be smart for your situation. And, if you do get a 2nd policy then make sure it is a level term policy with level premiums.
And, keep the policy you have.
June 19th, 2009 at 3:23 PM
Well, what's the GOAL of your life insurance? What do you want it to ACCOMPLISH?
If the goal is wealthbuilding, then INSURANCE flat out isn't the right product. If the goal is to get your minor kids through college, and your youngest is 30, then that goal has been accomplished.
If your goal is to pay estate taxes on the family farm so that the kids can inherit it without having to sell it, then you probably need to keep the whole life.
At your age, the TYPE of insurance is going to be determined by how much longer you want to keep it. If you plan on not needing insurance in five years, for whatever reason, then you can consider applying for the term, and cancelling the whole life. BUT, if your estate plan requires that, even if you die at 90, a policy pays out $50K to accomplish a preset goal, then you need to keep this.
If you've got a couple million in the bank, then I honestly don't see what the POINT of having ANY life insurance is. You can afford to self insure.
$50K really isn't much life insurance. You probably have no minor children. Term life at your age is going to be expensive. So. What's the GOAL?
June 19th, 2009 at 3:23 PM
As far as my knowledge,this is a question with various answers,it is really depending on the mind of yourself,providing a great resource here http://www.insuranceidea.info/free-insurance.htm for reference though.
June 19th, 2009 at 3:23 PM
Shopping around for a more affordable term life policy might be a good idea keeping in mind the lower rates and high death benefits. However, be careful. Before replacing an existing term life insurance policy make sure you closely compare your existing term life insurance policy with the one you’re thinking of replacing it with. Keep in mind the following key points – price, guarantee periods, convertibility, applicable riders, if available and finally the financial strength of the new insurance company. When you buy a new term life insurance policy, a new contestability period starts (usually for the first two years). You should also be aware that suicide is not covered under a new contract (usually for the first two years). Most importantly, DO NOT CANCEL any existing coverage until the new term life insurance policy has been approved, paid for, and delivered to you. Before an existing policy is replaced, it should always be clearly determined that such a decision is in your best interest.
Diana