OVER INSURED?
I AM 72 YEARS OLD. I AM RETIRED. I HAVE JUST S.S. ($2K A MONTH) AND A VERY SMALL PENSION BENEFIT ($100 PER MONTH). MY WIFE GETS ABOUT $800 A MONTH SS). PROBLEM: I HAVE TWO LIFE INSURANCE POLICIES, BOTH TERM LIFE. 1ST POLICY: $150K - AT $1,694 PREMIUM PER YEAR. AFTER 2028, WHEN I REACH 84 YEARS OLD, THE PREMIUMS JUMP TO SKY! 2ND POLICY: WAS ORIGINALLY $100K, DOWN TO $70K WHEN I REACHED 69, THIS SEPT., WHEN I REACH AGE 73 ONLY WORTH $50K, AT AGE 77, ONLY $35K, ETC., PREMIUM IS AT $920 A YEAR. WHEN I TOOK OUT THESE POLICIES, I WAS WORKING AND MAKING 6 FIGURES. MY HEALTH INSURANCE COSTS HAVE GONE UP 100% PLUS OVER THE LAST TWO YEARS! (BC/BS HAD TO COVER $1 BILLION DOLLAR IN LOSSES VIA THERE ENTRY (FOLLY) INTO OBAMA CARE! ). THE HIGH COSTS OF MEDICAL INSURANCE AND PROPERTY TAXES IS "KILLING US" (WE LIVE IN WILL CO.) I CANNOT DROP OUR HEALTH INSURANCE, I HAVE TO PAY PROPERTY TAXES. QUESTION: AM I "INSURANCE POOR"? I BOUGHT THE LIFE INSURANCE TO PROTECT MY WIFE IN CASE I PASS. I AM T HI N K ING OF DROPPING THE LIFE INSURANCES? WHAT DO YOU THINK? I HAVE PRE-PAID OUR FUNERALS, HAVE A WILL BUT NOT A "LIVING TRUST". HAVE SMALL HOME AND SOME SAVINGS. HOUSE IS PAID UP. YOUR THOUGHTS WOULD BE APPRECIATED. I HAVE ALWAYS ENJOYED SEE/HEARING YOU ON DON & ROMA'S SHOW AND ON TV, ETC..
Terry Says
Gosh, I don't know of any "term" policy that drops in value as you get older! The whole idea of term is that it is a "level" premium for a fixed number of years -- as long as you keep paying the premiums. I hate to say this, but it sounds like someone ripped you off. Let me send you directly to my expert, Jim Hunt, former Insurance Commissioner. You can reach him at http://evaluatelifeinsurance.org/. He can look at your specific policies and tell you what's involved. But from my view, I think since you have to make some cutbacks, one of these policies will probably have to go. Please do write back and tell me what Hunt recommends regarding the specific policies.
