March 25th, 2008 | 
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Debra M asked:
we have found out that our insurance is universal and has taken us this long to figure out that we were paying for nothing really. Should we switch to a term insurance at this age?
Trish Aitken
we have found out that our insurance is universal and has taken us this long to figure out that we were paying for nothing really. Should we switch to a term insurance at this age?
Trish Aitken
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ya you can try
Although I’m not an expert, i do believe term is not the best option at this point. You might have higher ratings and payments due to your age. Reason being is that the policies will term in 10-20 years. Then you would have to convert to a whole policy and it is going to be pretty hard to find someone to insure you at 70.
It might be better to check into whole-life or quite possibly a variable life policy. Variable policies are tied to the stock-market and actually can increase the amount of funds available when you pass.
Hope this helps.
yes, you can buy term life as the premium is cheaper.
before you make any changes, please make sure
1. your current health condition is acceptable by the insurer. You may need to undergo a health check before they accept your application. or loading may be imposed for any pre-existing condition.
2. Get you agent to run through some numbers with you. ie Your annual term life premium x 25 years. what is the total projected premium?
3. Universal life should have some cash value, maybe they can convert the cash value into some form of of paid up policy for the next 25 years or more.
4. if you are able to save on the premium, PLEASE deposit it into your bank account and dun spend it. People buy term and invest the rest, at the end many buy term and spend the rest. You need money for your retirement too.
** due to limited info given, kindly get your local agent to project 2 scenarios :
1) Continue Your exsting plan
2) Buy term and find out how much you can gain from both scenario.
It sounds like you do not have a good understanding of how insurance works.
Go meet with an agent or a financial planner to get a firm understanding of how insurance fits into your financial picture.
Term works well if you die during the term. If the term expires before you do, your heirs get nothing. If you have sufficient savings for all of your future financial needs – debts, retirement funds, future medical and nursing home bills etc – then you don’t need insurance and term did its job.
It is rare for someone to have sufficient savings.
Good Luck
.
Well, term insurance at 50 is going to be VERY expensive.
Go talk to a local agent – figure out how much the term is going to cost you, if you outlive the insurance. Compare it to what you’re paying on the Universal policy.
Be sure to establish the GOAL of the insurance, and consider if you’re even going to NEED it in 10 – 15 years.
do you mean we are already reached fifthy or planning to do it when you are 50.
such info’s are significant for an agent to calculate a presis formula to plan ur insurance.
there is no yes or no answer, just be sure your agent understand fully how you wanted to plan for your life insurance.
good luck.
Determine how much insurance you need and the purpose.
If you have just bought a home, there are some really good term rates for mortgages.
Term insurance may be a good option if you can answer the health questions. If you have any cash value in your universal life policy and you may have depending upon how long you have had it. Universal life can build up cash value, you might want to take that and get paid up insurance. It all depends upon what you are wanting to do.
Get with your agent, he can advise you. If you don’t have an agent, keep asking questions and don’t cancel if you are uninsurable. Universal life can be good.
I hope this helps.
If we only knew the date of our passing, it would be easy. Just buy term insurance that expires after that date.
Not knowing that, however, you need to ask how much you wish to leave behind to someone even if you live to 100.
There are good plans available at your age, and working with a competent agent, you can design a plan any way you want, even with the plan you now have. You may wish to transfer funds from other savings into your present plan. You would receive interest on those savings that would be sheltered from taxes and the savings in taxes would offset the cost of the insurance. And – you would have ready access to the money if you needed it.
Lots of choices!