My wife and I purchased Life Insurance when we were in our early 30s and we are 63. We recently had a meeting with our agent to discussed some questions & concerns we had about our policies. It was confirmed that our $50,000 policies would expire at 70 unless we start contributing additional monthly premium & extend it for 3 more years. What are options? Do we surrender our policies or convert to another type of insurance?

Terry Says:   These are NOT term life policies, which typically run for a maximum of 30 years.  Instead, these are poorly funded universal life policies.  The initial premiums ere based on higher rates of return, higher interest rates — and since we have had prolonged low rates, those premiums aren’t high enough to fund the policy — and haven’t been high enough for some time.

If this is the agent who sold them to you, he/she should be ashamed for not contacting you earlier.  So you really don’t want to trust him/her at this point!  I would suggest you contact Byron Udell at Accuquote  800-442-9899.  He helped me with a recent column on this subject of “underfunded life policies” — and I trust him to point you in the right direction, depending on the specifics of your policy and your current needs for insurance.

Here’s a link to that column that explains your predicament.   It’s titled “Is Your Life Insurance Dying?!