Dad is paying more into Life Insurance policy than it’s worth!
My father has a Whole Life Ins. policy since 1956. After my mom passed away, I took over paying his bills. One was a quarterly payment for a life insurance policy. The payment was $38. per quarter. My father had forgotten about the policy. I was unable to locate the policy. When I was finally able to obtain information, I discovered that the policy had a face value of $6,000. and had only accumulated $830. in dividends. So, for $6,830. in insurance he had paid over $9,300. in premiums. The policy had exceeded the payout value over 20 years ago. The insurance carrier advised me there was no paid up date and premiums were due until death. I was appalled that the insurance company could exploit elderly, by not sending out word that the premiums had exceeded the value of the policy. While I have him cashing out his policy, I am certain this is happening to others.
Terry Says
That is a great point, and I am happy to print your post. If your elderly relatives have life insurance policies, you should definitely contact the insurance company to get a “current in-force ledger” — which is just a way of saying they will tell you what it is worth, and what premiums you will likely have to pay in the future to keep it in force. (That’s especially important with some older, “variable” policies that were based on the idea interest rate would stay high.)
How do you find out whether your parent has an old life policy? It’s time to ask Start the process by clicking on the link on my home page to download my free Personal Financial Organizer form. Just the act of filling it out will send you on a treasure hunt for things like military separation records (so you get a free headstone), wills, powers of attorney for healthcare, etc. It’s a tough discussion to have but this form will help you get started!
